final lalitpur sub metropolitan city draft esmf ppurp clean final

PROPOSED

PRO-POOR URBAN REGENERATION PILOT

Lalitpur Sub-Metropolitan City Lalitpur, Nepal

Environmental and Social Management Framework

Draft, July 1, 2013



Lalitpur Sub-Metropolitan City a

LIST OF ACRONYMS

BP Bank Procedure

CBO Community Based Organization

CBS Central Bureau of Statistics

DDC District Development Committee

DPR Detail Project Report

EA Environmental Assessment

EIA Environmental Impact Assessment

EMP Environmental Management Plan

EPA/EPR Environmental Protection Act/Environmental Protection Regulations

ESMF Environmental and Social Management Framework

GoN Government of Nepal

IEE Initial Environmental Examination

ILO International Labor Organization

IP-VCDF Indigenous Peoples-Vulnerable Community Development Framework

IP-VCDP Indigenous Peoples-Vulnerable Community Development Plan

LSMC Lalitpur Sub –metropolitan City

NGO Non-Government Organization

OP Operational Policies

PAP Project Affected Person

PMT Project Management Team

PSC Project Support Consultant

PPURP Pro Poor Urban Regeneration Pilot

RAP Resettlement Action Plan

VDC Village Development Committee

VDCP Vulnerable Community Development Plan



Lalitpur Sub-Metropolitan City A

TABLE OF CONTENTS

CHAPTER I: INTRODUCTION ..................................................................................................................... 1

1.1 BACKGROUND ...................................................................................................................................................... 1

1.2 SECTORAL AND INSTITUTIONAL CONTEXT ........................................................................................................ 2

1.3 PROJECT DESCRIPTION ...................................................................................................................................... 3

1.3.1 Broader Project Objectives .................................................................................................... 3

1.3.2 Project Development Objectives (PDO) ................................................................................. 3

1.3.3 Project Beneficiaries .............................................................................................................. 3

1.3.4 Project Components .............................................................................................................. 3

1.3.4.1 Component 1: Participatory Action Plan for Pro-poor Urban Regeneration ...................... 3

1.3.4.2 Component 2: Grant Facility for Pro-poor Urban Regeneration ........................................ 4

1.3.4.3 Component 3: Community Awareness and Local Capacity Building for Pro-poor Urban

Regeneration. ................................................................................................................. 5

1.3.4.4 Component 4: Participatory Monitoring & Evaluation and Knowledge Dissemination,

Project Management and Administration ......................................................................... 6

1.4 PROJECT INSTITUTIONAL AND IMPLEMENTATION ARRANGEMENT ................................................................. 6

1.5 TYPE AND NATURE OF CIVIL WORKS SUPPORTED UNDER PPURP ............................................................. 7

1.6 ACTIVITIES EXCLUDED FROM PPURP .............................................................................................................. 7

1.7 NEED FOR ENVIRONMENT AND SOCIAL MANAGEMENT FRAMEWORK ........................................................... 7

1.8 PROCESS ADOPTED FOR PREPARING THE ESMF ........................................................................................ 10

1.9 PURPOSE AND OBJECTIVES OF THE ESMF ................................................................................................... 10

1.10 REVISION/MODIFICATION OF THE ESMF ........................................................................................................ 11

1.11 LIMITATIONS OF THE ESMF ............................................................................................................................. 11

CHAPTER II: OVERVIEW OF THE PROJECT AREA .............................................................................. 12

2.1 GEOGRAPHICAL LOCATION .............................................................................................................................. 12

2.1.1 Geographical Boundaries .................................................................................................... 12

2.1.2 Population ........................................................................................................................... 12

2.1.2.1 Population Distribution .................................................................................................... 12

2.1.2.2 Ward Wise Population of LSMC ...................................................................................... 13

2.1.3 Literacy ................................................................................................................................ 13

2.1.4 Employment ........................................................................................................................ 13

2.1.5 Settlement Pattern ............................................................................................................... 13

2.1.6 Income ................................................................................................................................ 14

2.1.7 Economy ............................................................................................................................. 14

2.1.8 Infrastructures ..................................................................................................................... 14

2.1.8.1 Water Supply and Sanitation ......................................................................................... 14

2.1.8.2 Housing Pattern ............................................................................................................ 15

2.1.8.3 Cultural and Architecturally Important Places in Project Wards ...................................... 15

CHAPTER III: REGULATORY AND LEGAL FRAMEWORK ................................................................... 17



Lalitpur Sub-Metropolitan City B

3.1 KEY APPLICABLE NATIONAL ENVIRONMENTAL LAWS AND REGULATIONS ......................................... 17

NATIONAL BUILDING CODE OF NEPAL, 1993(2050 BS) ................................................................. 18

3.2 KEY APPLICABLE NATIONAL SOCIAL LAWS AND REGULATIONS .................................................................. 19

3.3 APPLICABLE WORLD BANK POLICIES ............................................................................................................. 21

3.4 ENVIRONMENTAL ASSESSMENT (OP/BP 4.01) ............................................................................................. 21

3.5 PHYSICAL CULTURAL RESOURCES (OP/BP 4.11) ........................................................................................ 22

3.6 INDIGENOUS PEOPLE (OP/BP 4.10)............................................................................................................... 22

3.7 INVOLUNTARY RESETTLEMENT (OP/BP 4.12) .............................................................................................. 23

CHAPTER IV: POTENTIAL ENVIRONMENTAL AND SOCIAL IMPACTS AND THEIR MANAGEMENT

..................................................................................................................................................................... 24

4.1 LIKELY BENEFICIAL IMPACTS ........................................................................................................................... 24

4.2 LIKELY ADVERSE IMPACTS ............................................................................................................................... 24

4.2.1 Environmental ..................................................................................................................... 24

4.2.2 Social .................................................................................................................................. 25

4.3 GENERIC MITIGATION MEASURES FOR EACH IDENTIFIED POTENTIAL IMPACTS ........................................ 25

4.3.1 Physical Environment .......................................................................................................... 25

4.3.2 Biological Environment ........................................................................................................ 26

4.3.3 Socio-economic,Cultural, and Archaeological Environment.................................................. 26

CHAPTER V: ENVIRONMENTAL AND SOCIAL SCREENING AND MANAGEMENT ........................... 28

5.1 ENVIRONMENTAL& SOCIAL SCREENING ......................................................................................................... 28

5.2 Safeguard Categorization of Municipal Investments and Sub-grants .................................... 28

5.2.1 CategoryImunicipal investments and sub-grant interventions .............................................. 29

5.2.2 Category II municipal investments and sub-grant interventions .......................................... 30

5.2.3 Category III municipal investments and sub-grant interventions .......................................... 30

5.2.4 The Roles and Responsibilities of the World Bank ............................................................... 31

5.3 MANAGEMENT OF SOCIAL SAFEGUARDS ........................................................................................................ 31

5.3.1 Social Screening (Including Resettlement Policy Framework, Indigenous People (IP) and

Vulnerable Community Development Plan, and Gender Development Plan) ....................... 32

5.3.2 Indigenous Peoples and Vulnerable Communities Development Framework(IP-VCDF) ....... 33

5.3.2.1 Relevant Policies on Indigenous People and other Vulnerable Communities ................. 33

5.3.2.2 Screening and Categorization of Impacts on IPs and VCs ............................................. 34

5.3.2.3 Specific Measures to be followed while dealing with Vulnerable Groups ........................ 35

5.3.2.4 Framework for Developing Gender Action Plan ............................................................. 36

5.3.2.4.1 Gender Development Plan ...................................................................................... 36

5.4 PROCESS FOR MANAGING ENVIRONMENTAL AND SOCIAL IMPACTS ........................................................... 37

CHAPTER VI: INFORMATION AND CONSULTATION FRAMEWORK .................................................. 40

6.1 INFORMATION AND CONSULTATION FRAMEWORK FOR MUNICIPAL INVESTMENTS AND SUB-GRANTS OF

PPURP .............................................................................................................................................................. 40

6.1.1 Identify and Analyze Potential Stakeholders to Understand their Interest and Needs .......... 40

6.1.2 Engage Stakeholders Systematically Throughout the Design and Implementation Stages ... 40

6.1.3 Inform Stakeholders and Accountability Mechanism ............................................................ 41



Lalitpur Sub-Metropolitan City C

6.2 PRESENT STATUS OF CONSULTATIONS COMPLETED AT PPURP............................................................... 41

6.2.1 Consultations during Prefeasibility Study and Preparation of ESMF ..................................... 41

6.2.2 Modes of Future Consultations ............................................................................................ 41

6.3 INFORMATION DISCLOSURE AND DISSEMINATION ......................................................................................... 42

CHAPTER VII: GRIEVANCE REDRESS MECHANISM ........................................................................... 43

CHAPTER VIII: MONITORING AND EVALUATION ................................................................................. 44

8.1 MONITORING AND EVALUATION ....................................................................................................................... 44

CHAPTER IX: CAPACITY BUILDING ....................................................................................................... 45

9.1 TRAINING ............................................................................................................................................................ 45

9.1.1 For Environment and Social Officer of LSMC ....................................................................... 45

9.1.2 For Municipal Staff ............................................................................................................... 45

9.2 TRAINING ON PREPARING COMMUNICATION STRATEGIES ........................................................................... 46

ANNEXES:

Annex 1: Project institutional and implementation arrangement

Annex 2: IEE Flow Diagram

Annex 3: EMP format

Annex 4: Social Screening Format including RAP

Annex 5: a.IP-VCDP Impact Categorization

b. Outline structure of IP/VDCP

Annex 6: Action Points for Preparation of Gender Action Plan

Annex 7: Pictorial highlights of ward level interactions.



Lalitpur Sub-Metropolitan City 1

CHAPTER I: INTRODUCTION

1.1 Background

Nepal is among the poorest countries in the world, with per capita GDP of US$619 (2011 prices) and an

estimated 25 percent of Nepalese falling below the international poverty line (US$1.25 per day). The

country is caught in a cycle of political instability, poverty and economic stagnation, which has resulted in

a mass exodus of the Nepalese productive workforce out of the country. Nepal is also one of the fastest

urbanizing countries in South Asia. The Kathmandu Valley metropolitan region, with a population growth

of about 4 percent per year, is the largest gravity center for migration in Nepal. Increasing numbers of

people are moving to the Kathmandu Valley where economic opportunities are greatest. The

sustainable development and management of the Kathmandu Valley is of strategic importance to unlock

economic growth and reduce poverty in Nepal. The Kathmandu Valley is the most important heritage

destination and the gateway for tourism in Nepal. The country’s most widely recognized cultural asset is

the UNESCO Kathmandu Valley World Heritage site, which is composed of seven Protected Monument

Zones, including the Durbar Squares1 situated in the historic cores of the three main cities of the

Kathmandu Valley (Lalitpur, Bhaktapur and Kathmandu).

Lalitpur City2, popularly known as Patan, is one of the main centers of cultural heritage and craft

production in Nepal, and the second largest municipality in the Kathmandu Valley, with a population of

about 227,000 according to the 2011 population census data. Lalitpur City is the oldest of the three main

cities in the valley. Its Durbar Square consists of an extensive palace, temples, shrines, monuments and

daily activities that are a draw for tourists. In 2009-10, 125,000 tourists, equivalent to 21 percent of

Nepal’s international tourists, visited the Durbar Square in Lalitpur City.3 The city’s living culture and

handicrafts are also primary elements of Nepal’s national pride and identity. Throughout the city there

are craft workshops and businesses that have been passed down through many generations along with

the master-level skills that give Lalitpur its reputation as the “City of Arts”. Nineteen percent of Lalitpur

City’s residents report that they work in crafts and related trades.4 The city is especially known for over

100 residence-based workshops of metal workers in the neighborhood of Woku Bahal. They produce

silver jewelry, bronze and copper statues of Hindu and Buddhist deities and architectural details for

traditional buildings.5 In addition, Lalitpur City is famous for its traditional music, dance, drama and

festivals with their colorful costumes, decorated chariots, special foods and blessing ceremonies.

Rapid urbanization, combined with inadequate development control and management, have led to a

deterioration of the urban fabric in the Kathmandu Valley, which is manifested in low rates of job

creation, social segregation and a tangible erosion of cultural identity; increased vulnerability to natural

disastersandan increase in slums and squatter settlements. With the notable exception of Bhaktapur

municipality, the public cultural and historic assets of the Kathmandu Valley have suffered considerable

damage and are losing cultural value, religious significance, and tourism potential. Lalitpur City has not

been spared from these challenges, although its historic core is better maintained than the historic core

of Kathmandu City. Many of the housing units in Lalitpur City now bear a dilapidated look, and the

1 Durbar Squares are the plazas opposite old royal palaces in Nepal.

2Lalitpur Sub-metropolitan City is the legal name of the municipality.

3 Estimate based on revenue section of the municipality.

4 This is the second largest occupational group in the city, surpassed only by service and sales workers,

accounting for 22 percent of local jobs, based on 2001 population census data. 5See “StrengtheningPatan as a Crafts Town”. Planning Studio III.Department of Architecture and Urban

Planning, IOE, Pulchowk Campus. 2012.




neighborhoods surrounding the Durbar Square lack basic physical facilities, including water supply and

sanitation.

Lalitpur’s residents face the threat of natural disasters, due to their location in a high-risk seismic zone.

The seismic risk is amplified given the Lalitpur City’s social, economic, and political characteristics that

increase its vulnerability, particularly the rapid and uncontrolled development. The building code is ill-

enforced, public and private construction takes place without consideration of seismic risk, and technical

information about earthquake risk in the Valley is incomplete, difficult to understand, and dispersed.

Institutional arrangements and basic regulatory frameworks for construction supervision lack both

transparency and clear roles and responsibilities among government agencies at the national and

municipal levels. A dearth of investment in understanding and mitigating the risk continues to worsen the

situation.

As in the Kathmandu Valley as a whole, poverty is multidimensional in Lalitpur City and includes social

segregation, discrimination, lack of voice, vulnerability to shocks and poor access to basic infrastructure

and services, such as water and sanitation, health care and education. The poor and vulnerable include

not only the income poor but also low caste and some indigenous communities, ethnic minorities, the

disabled, and women, especially those who are single heads of households. These dimensions of

poverty reinforce disempowerment and exclusion from income generating opportunities. Cultural

industries, such as tourism and handicrafts, still provide significant, but diminishing, livelihood

opportunities in the valley through, e.g., accommodations and handicraft sales. Many of the poorest are

involved in the production of handicrafts and artisans face serious challenges in sustaining their

livelihoods.

1.2 Sectoral and Institutional Context

Reversing the decline of distressed neighborhoods in the historic city cores of the Kathmandu Valley

would require an integrated approach to urban regeneration that involves support for people, places,

businesses and institutions. In the Kathmandu Valley, new development needs to be combined with the

regeneration of the historic city cores to upgrade physical facilities, improve housing and living

conditions, and promote economic revitalization in distressed neighborhoods, while protecting the urban

fabric of historic, cultural and architectural elements. A sustainable urban regeneration approach would

be based on these four pillars: (a) community strengthening and mobilization (people), (b) infrastructure

upgrading, cultural heritage conservation and disaster risk management (places), (c) job creation and

income generation opportunities (businesses), and (d) a successful partnership between the

communities, the local government and the private sector (institutions).

The project would pilot a pro-poor, community-driven approach for the urban regeneration of part of the

historic core of Lalitpur City based on a proper understanding of the local population, social dynamics

and economic conditions. The grant would support pro-poor regeneration activities in distressed

neighborhoods in the historic core of Lalitpur City aiming at: (a) empowering the poorest and most

vulnerable communities, community-based organizations (CBOs) such as the guthis and local NGOs

through community-driven activities; (c) upgrading local infrastructure, conserving the local heritage and

reducing vulnerability to disasters; (d) creating jobs for the poor through cultural industries, and (d)

improving the lines of communication between the municipal government and the poorest and most

vulnerable communities, building local capacity and raising community awareness.

To pilot the new approach, the project would fund a grant facility to improve local services and public

spaces, promote local heritage and develop income-generating activities linked to cultural industries in




distressed neighborhoods of the historic core of Lalitpur City. The pilot project has significant potential for

renewal and the challenges in terms of infrastructure, services and housing are not as severe as those

affecting the historic core of Kathmandu City. Lalitpur’s city administration has demonstrated a strong

commitment to poverty alleviation and to the preservation of the city’s built and living heritage. Lalitpur

was the first city in Nepal to undertake a comprehensive poverty profile in 1999 as part of UN-Habitat’s

Urban Management Program. The poverty profile led to the creation of an Urban Poverty Fund, into

which the city has contributed through a budgetary allocation. The city collects entrance fees to the

Durbar Square, which are used for its maintenance and offers monetary incentives to encourage the

rehabilitation of private heritage buildings. The city has also supported crafts and living culture through

the development of a heritage trail to draw tourists into the neighborhoods and special crafts markets to

eliminate the middlemen between producers and buyers. However, a lack of city capacity and resources

has limited these activities and their impact on poverty.

1.3 Project Description

1.3.1 Broader Project Objectives

The project contributes to the high-level objective of reducing poverty and vulnerability in the historic core

of Lalitpur City by improving local services, conserving local heritage and culture, and increasing access

to income-generating opportunities in cultural industries.

1.3.2 Project Development Objectives (PDO)

The PDO is to (a) contribute to improving the living conditions of poor and vulnerable households in

selected wards of the historic core of Lalitpur City by piloting urban regeneration activities and (b)

demonstrate the feasibility of an integrated urban regeneration approach to decision-makers in the

Kathmandu Valley.

1.3.3 Project Beneficiaries

The primary beneficiaries are (a) those individuals directly benefiting from the urban regeneration

initiatives, the awareness raising activities and capacity building programs carried out as part of the pilot,

as well as (b) the municipal officials who will be trained to implement an integrated urban regeneration

approach. The poor and vulnerable, who are the “target beneficiaries” of the pilot, include the income

poor, low caste and indigenous communities, ethnic minorities, the disabled, and women, especially

those who are single heads of households. Some 4,500 people (1,000 households) are expected to

benefit from the urban regeneration activities.

1.3.4 Project Components

The project would have the following four components:

1.3.4.1 Component 1: Participatory Action Plan for Pro-poor Urban Regeneration

This component would support the preparation of a participatory action plan for pro-poor urban

regeneration in selected wards in the historic core of Lalitpur City. Activities would include:

(i) Social assessment. The social assessment would include a baseline livelihood and needs

assessment to understand the livelihood strategies of households belonging to different income,

gender, social, and ethnicity and caste groups in the project area. The assessment would inform the

identification of the target beneficiaries for the urban regeneration activities. It would also identify

stakeholders, interests, and potential for conflict so as to better ensure the success of the project.




(ii) Market assessment. The market analysis would (a) examine the current state of cultural industry

(handicraft and cultural tourism) clusters in Lalitpur City; (b) identify potential demand and market

niches for different cultural heritage sites restoration and related cultural tourism services and

handicrafts; (c) identify gaps and necessary measures for improving local handicrafts products and

cultural tourism services; (d) develop a marketing strategy to increase visibility of the project site

(including possible innovation, such as ICT-based tools, for site interpretation); and (e) propose a

series of practical measures to enhance the flow of benefits to the poor and vulnerable.

(iii) Site management framework. Activities for the preparation of the site management framework

would include: (a) mapping and inventory of all physical cultural heritage assets and notable

intangible heritage (e.g., festivals, handicraft production), and stocktaking of past projects and

activities in the project area; (b) review of the existing management plan for the Durbar Square/buffer

zone and municipal plans; (c) stakeholder analysis and clarification of the mandates, roles and

responsibilities of various stakeholders for the maintenance of the heritage assets.

(iv) Participatory action plan for pro-poor urban regeneration. The participatory action plan would

build on the results of the social and market assessments and site management framework to (a)

develop a shared vision for the urban regeneration of the project area; (b) identify the priorities for

the urban regeneration activities and the broad areas for which specific calls for proposals would be

issued, including possible earmarking of funds for specific activities (e.g., promotion of intangible

heritage) which may otherwise be neglected; (c) define eligibility criteria for proposals under the grant

facility as well as possible target criteria for specific vulnerable groups (e.g., disabled people, dalits).

The participatory action plan, and subsequent annual updates, will be jointly endorsed by the

municipality and ward representatives.

The participatory planning would aim at empowering local communities and building coalitions of

stakeholders (e.g., municipal agencies, NGOs, small businesses) and organize them into a cohesive

group for the implementation of the urban regeneration activities. Emphasis would be paid to establishing

and strengthening representation and voice mechanisms for the poor and vulnerable to facilitate their

participation in decision-making.

1.3.4.2 Component 2: Grant Facility for Pro-poor Urban Regeneration

This component would fund a demand-driven, competitive matching grant facility for pro-poor urban

regeneration activities in the project area with the following three windows: Pro-poor Municipal

Investments and Initiatives Grant Window, Pro-poor Community-based Initiatives Grant Window and Pro-

poor Business Development Grant Window. The implementation arrangements of the facility-funded

activities have been formalized through an Operational Manual.

(i) Pro-poor Municipal Investments and Initiatives Grant Window. The objective of the grant window

is to support small works implemented by the municipality, such as improvements in local

infrastructure and basic services and heritage conservation, to enhance the living conditions of the

poorest and most vulnerable communities in the project area. The municipality would be required to

provide matching contributions of at least 10 percent. Possible initiatives include stone paving and

improvements in solid waste collection, renovation of traditional water sources known as hitis(stone

spouts) and the maintenance and upgrading of public spaces within a community. All civil works

financed under this window will be constructed with seismic resilience and criteria for site selection

will take into consideration flood risk.




(ii) Pro-poor Community-based Initiatives Grant Window. The objective of the grant window is to

support community-driven initiatives for heritage conservation and the enhancement of cultural

identity, social cohesion and acceptance of cultural diversity. As is standard procedure throughout

Nepal, community groups would contribute a minimum of 10 percent of project costs in cash or in

kind. The grant facility could fund community-driven initiatives that engage neighborhood groups in

protecting their own heritage through participatory inventories of their local assets; facilitate

community-based maintenance and conservation initiatives (e.g., communal courtyards and local

shrines); support revitalization of disappearing celebrations and ceremonies; and create signage and

interpret traditional festival routes paying particular attention to benefits for poor neighborhoods along

the route. Given the high disaster risk in the built environment, a seismic risk awareness campaign

will be incorporated into the community-driven initiatives.

(iii) Pro-poor Business Development Grant Window: The objective of the grant window is to support

initiatives by eligible small businesses, NGOs, cooperatives and community-based organizations

aimed at involving the poorest and most vulnerable in the development of traditional handicrafts and

cultural tourism related products and services. The grantees would be required to provide matching

contributions of at least10 percent. The grant facility could fund sub grants that, e.g.,: provide training

and skill development for poor artisans to improve technical know-how and the use of time-saving

tools and techniques; establish a handicraft exhibition and sales promotion facility accessible to poor

craftsmen to eliminate middlemen; develop a cultural tour of artisan workshops that includes poor

handicraft producers; develop new fee-based cultural activities that can be provided by poor

residents (e.g., storytelling, traditional cuisine and special interest tours such as neighborhood

temples and celebrations); provide vocational training for youth for innovative site interpretation.

The community-based and business development activities would be selected competitively and

based on demand in accordance with grant selection and eligibility criteria defined as part of the

participatory planning process to maximize the impact in terms of community development and

poverty reduction. The proposals would be selected based on demonstrated direct benefits to the

target poor and vulnerable groups and alignment with the priorities identified as part of the

participatory planning process. The call for proposals will specify the eligibility criteria for the

submission of the proposals.

1.3.4.3 Component 3: Community Awareness and Local Capacity Building for Pro-poor Urban Regeneration.

This component would fund community awareness-raising initiatives and local capacity building to

support the effective implementation of the urban regeneration activities and the sustainability of the

outcomes. Programs would include: community awareness and strengthening and municipal capacity

building.

(i) Community Awareness and Strengthening. This subcomponent would fund communication

programs, workshops, and training to: (a) sensitize poor and vulnerable residents on the value of

their heritage and its relevance to their wellbeing, including opportunities for sustainable pro-poor

revenue generating activities; (b) raise community awareness and preparedness for disaster risk

management in order to help residents understand the risk and take ex-ante measures to increase

their resilience; (c) provide specialized technical support and expertise (in areas such as tourism

promotion, product development and marketing, cultural heritage renovation) to grant proponents as

required for the implementation of initiatives under the Grant Windows.




(ii) Municipal Capacity Building. This subcomponent would include training, seminars, workshops,

knowledge exchanges and technical assistance to enhance the capacity of municipal staff to: (a)

conserve, manage and promote the city’s cultural heritage as an asset for pro-poor economic

development; (b) effectively work with community groups, especially those representing the poor and

vulnerable, on urban regeneration activities; and(c) directly foster access of the poor and vulnerable

to the socio-economic benefits of cultural industries; (d) engage in disaster resilient development and

construction techniques to protect future income streams, and (e) institutionalize the integrated urban

regeneration approach to ensure continuity of the activities after project closure. A needs

assessment would be carried our during project preparation to map ongoing municipal capacity

building activities and identify gaps which would be filled by the project.

1.3.4.4 Component 4: Participatory Monitoring & Evaluation and Knowledge Dissemination, Project Management and

Administration

This component would support technical assistance and training for Monitoring & Evaluation (M&E),

knowledge dissemination, project management and administration.

(i) Participatory M&E and Knowledge Dissemination. This subcomponent would support: (a) the

development of a Management Information System (MIS) for the grant facility, and a program of

participatory community-based M&E to enable the tracking of socio-economic benefits accruing to

the local residents and the target poor and vulnerable groups from the project activities and assess

the performance of the grant facility in meeting its objectives and adhering to its targeting and

funding criteria; (b) household and community surveys at project start and completion to collect data

for the grant’s monitoring system, including PDO indicators data and disaggregated data on target

beneficiaries; and (c) the dissemination of lessons learned from the implementation of the grant to

promote the scaling up of the pilot through similar city-level initiatives (through workshops,

media/social media events).

(ii) Project Management and Administration. This subcomponent would cover the incremental

operating costs and the costs of strengthening the project management capacity of municipal staff

and local communities6

1.4 Project Institutional and Implementation Arrangement

A Steering Committee will be established to oversee implementation of the pilot, and support the

municipality in coordinating the activities with central agencies and the private sector. The structure of

the Steering Committee is provided in the Operation Manual.

A Project Management Team (PMT) will be established in the municipality for the implementation of the

project activities. The PMT with support from the Project Support Consultants (PSC) will have overall

responsibility for the project implementation as per the procedures specified in the Operational Manual.

The PMT with support from the PSC will assist in the screening of the sub-grants as per ESMF and also

be responsible for implementation of the municipal investments under the Pro-poor Municipal

Investments and Initiatives Grant Window. The details of project institutional and implementation

arrangement are included in annex 1.

6Excluding salaries of government staff.




1.5 Type and Nature of Civil Works Supported Under PPURP

This project will fund small civil works in wards of 16, 18, 21, and 22 of LSMC. Such small civil works will

support the regeneration of the project area. In this context, some of the activities proposed by the

participants during ward level and LSMC level consultations are as follows;

Maintenance and renovation of communal courtyards and local shrines

Construction of small pavements in some areas of recipient wards

Stone paving in inner roads, in places of cultural and archeological importance

Improvements in solid waste collection system

Conservation of heritage homes

Renovation of community buildings

Rehabilitation of stone spouts

Renovation and rehabilitation of wells

Greenery improvements

Own heritage through participatory inventories of their local assets

Facilitate community based installation of solar street lights

Construction and maintenance of public toilets

Improvement of traditional festival routes paying particular attention to benefits for poor

neighborhoods along the routes

Rehabilitation of ponds

Small infrastructure works that enable socio-economic benefits to accrue to the local residents and

target poor and vulnerable groups.

The maximum allocation for works under PPURP is USD 825,000 over a period of four years. The

above list is indicative of the possible civil works that could be carried out under PPURP based on the

outcomes of initial stakeholder consultations. Given that the activities are demand-driven, the works will

be identified through the planning process for the municipal investments under the Pro-poor Municipal

Investments and Initiatives Grant Window and through the competitive selection process for the

investments under the Pro-poor Community-based Initiatives and Business Development Grant

Windows.

1.6 Activities Excluded from PPURP

The following lists the municipal investments and sub-grant activities that cannot be supported under the

PPURP.

Any municipal investment and sub-grant activity lying within the protected area/UNESCO declared

heritage site;

Any municipal investment and sub-grant requiring Environmental Impact Assessment (EIA) which will

be known after screening;

Any municipal investment and sub-grant activity that requires the permanent relocation of

households or involuntary acquisition of land and property

Hazardous materials used in manufacturing handicraft items, like use of toxic chemicals in metal

products

1.7 Need for Environment and Social Management Framework

Although the general thrust and broad project interventions are well understood as outlined above, the

specific project activities are yet to be defined and therefore the nature and scale of their impacts will be




known only later. The project area would include selected neighborhoods in the buffer zone that

surrounds the Durbar Square Protected Monument Zone. The project area covers 4 wards (wards 16,

18, 21, and 22) located in the buffer zone of Patan Durbar Square (cf. map below). In this context, a

safeguard framework document is needed to ‘guide’ the planning, design and construction elements of

the project activities. Such a guidance document or a framework would help in integrating and

harmonizing the environment and social management principles at the various stages of project

preparation and execution. In this context, this Environment and Social Management Framework (ESMF)

has been prepared for the PPURP.




This ESMF forms part of the comprehensive environmental and social management approach that has

been adopted for addressing the potential environmental and social impacts from PPURP, even when

these are considered minor in nature.

Since specific demand-driven urban regeneration activities will only be identified in the course of project

implementation, a mechanism for screening and assessing possible adverse short-term environmental

and social impacts during the municipal investments and sub-grant preparation is required. This ESMF

defines (a) the approach for identifying the environmental and social issues associated with the PURPP

activities, (b) the requirements for conducting environmental and social screening and environment and

social assessment studies, and (c) measures to prevent, mitigate and manage adverse impacts and

enhance positive ones. This ESMF includes an exclusion list and a simplified screening checklist, which

will be used to determine what types of environmental and social assessment are required for the

proposed initiatives. Environmental Management Plans/Social Action Plans (EMP/SAP) for specific

initiatives will be prepared if required. This ESMF includes a resettlement policy framework describing




mechanisms for addressing the possible temporary disruption of informal sources of income (e.g.,

temporary displacement of informal vendors), and temporary restrictions on access to facilities while the

construction work is ongoing in the project area. The ESMF includes a vulnerable community

development plan, a gender development framework, and capacity building measures and a monitoring

mechanism. This ESMF specifies norms and procedures for the conservation and restoration of historic

buildings and for dealing with chance finds during small works.

1.8 Process Adopted for Preparing the ESMF

The process adopted for the preparation of this ESMF includes: review of relevant environmental and

social policies, acts, regulations and guidelines of GON, safeguard policies of World Bank, and

interactions and consultations with all concerned stakeholders. Therefore, this ESMF is primarily based

on the reviews of available relevant literatures and consultations with municipal level and project level

stakeholders.

1.9 Purpose and Objectives of the ESMF

The ESMF seeks to:

1. Establish clear procedures and methodologies for screening, reviewing and managing

environmental and social safeguards for the municipal investments and sub-grants to be financed

under the Project.

2. Consolidate and facilitate understanding of all essential policies and regulations of the GoN as well

as the World Bank’s environmental and social safeguards regime that are applicable to the Project

3. Provide practical guidance on the implementation of the environmental and social management

measures.

4. Specify norms and procedures for the conservation and restoration of historic buildings and for

dealing with chance finds during small works.

5. Specify institutional arrangements, including appropriate roles and responsibilities for managing,

reporting and monitoring environmental and social concerns of the municipal investments and sub-

grants.

6. Provide a framework for consultation and information disclosure.

7. Determine the other institutional requirements, including those related to training and capacity

building, needed to successfully implement the provisions of the ESMF.

The application and implementation of the ESMF therefore, will:

1. Support the integration of environmental aspects into the decision making process of all stages

related to planning, design, execution, operation and maintenance of sub-grants, by identifying,

avoiding and/or minimizing adverse environmental impacts early-on in the project cycle.

2. Minimize environmental degradation to the extent possible resulting from either individual sub

grants or through indirect, induced and cumulative effects of project activities.

3. Enhance the positive/sustainable environmental and social outcomes through improved/appropriate

planning, design and implementation of sub-activities/sub-components.

4. Consider the level of environmental and social risk of each type of investments in allocating time

and resources to be dedicated for stakeholder consultation.

5. Build the capacity of the LSMC to take-up and coordinate responsibilities related to the application

and implementation of the ESMF, including the preparation of the sub-grant specific Environmental

Assessment and Management Plans (if required).




6. Provide guidelines and procedures for further consultations during project implementation, in

particular in defining and designing sub-grants and specific works.

7. Provide a systematic guidance to address potential risks and to enhance quality, targeting, and

benefits to the wards/communities.

8. Ensure that those stakeholders, irrespective of whether they benefit from or are adversely affected

by the project interventions, are well informed and are able participate in the decision-making

process.

9. Support compliance with applicable legal/regulatory requirements of GoN as well as with the

requirements set forth in the relevant Bank policies.

10. Protect human health.

11. Minimize adverse impacts on cultural property.

1.10 Revision/Modification of the ESMF

The ESMF will be an ‘up-to-date’ or ‘live document’ enabling revision, when and where necessary.

Unexpected situations and/or changes in the project or components design would therefore be assessed

and appropriate management measures will be incorporated by updating this ESMF. Such revisions will

also cover and update any change/modification introduced in the legal/regulatory regime of the country.

Also, based on the experience of application and implementation of this framework, the provisions and

procedures would be updated, as appropriate, in agreement with the World Bank and the PMT

1.11 Limitations of the ESMF

This ESMF has been developed in line with World Bank’s Operational Policies (OPs) and is based on

GoN laws and regulations, as applicable at the time of preparation of this document. Any proposed

modifications in the laws, regulations or guidelines that were notified as ‘draft’ at the time of preparation

of this document have not been considered.




CHAPTER II: OVERVIEW OF THE PROJECT AREA

2.1 Geographical Location

LSMC is situated in the southeast part of the Kathmandu valley which is located between the latitudes

27o 32' 13" and 27

o 49' 10" North and longitudes 85

o 11' 31" and 85

o 31' 38" East. The valley lies at a

mean elevation of about 1350 m. above sea level.

The city spreads over an area of 15.43 sq.km and is divided into 22 wards. Of the 22 wards, area wise

ward no. 15 is the largest, with an area of 2.43 sq.km and, with an area of 0.09 sq.km, ward no. 21 is the

smallest.

The city is located over a plateau like area with its outer edges fanning out with gentle slopes towards

the rivers that form its boundaries. This is in consonance with the traditional settlement planning

philosophy where the settlements were located on relatively higher ground preserving the relatively fertile

agricultural land that surrounded it. This planning effort assured the optimization of the use of urban

space and the farmlands that carried economical as well as environmental significance to the urban

residents.

The altitude of the city varies from a minimum of 1266 m. to a maximum of 1366 m. above sea level,

which shows the relative flatness of the ground on which the city is located.

2.1.1 Geographical Boundaries

East Imadol VDC and Harisiddhi VDC

West Kirtipur Municipality and Kathmandu Metropolitan City (KMC)

North Kathmandu Metropolitan City (KMC)

South Saibu VDC, Sunakothi VDC and Dhapakhel VDC

LSMC lies within the warm temperate climate zone of the Kathmandu valley, with a typical monsoonal

two-season year. The yearly average temperature in the city is 15-20o Celsius and the yearly average

rainfall is 2000-2400 mm.

2.1.2 Population

2.1.2.1 Population Distribution

The male population exceeds the female population in all age groups except for the 75 years and above.

The dependent ratio is satisfactory as those in age below 10 and above 65are less than the working age

population. In the old age group above 65, the female population is high in line with the national average.




2.1.2.2 Ward Wise Population of LSMC

Population of selected four wards of Lalitpur Sub-metropolitan City

Particulars

Wards

16 18 21 22 Other18

Wards

2001 Census

Households 989 1287 906 1890 29924

Population 5294 6915 4249 8513 138020

Dalits7' population 0 92 0 0

Janjatis8 or ethnic minorities' population 4742 6118 3377 6307

2011 Census

Households 858 1200 1143 2460 48920

Population 4362 5777 4659 10109 195895

Dalits' population N/A N/A N/A N/A N/A

Janjatis or ethnic minorities' population N/A N/A N/A N/A N/A

Note:

List of hills Dalits and Janjatis: Based on the classification for national census of 2001 by the CBS

Hills Dalits:

Kami, Damai, Sarki, Badi, Gaine and unidentified dalits

Hills and mountain Janjatis or ethnic minorities:

A. Newar

B. Magar, Chhantel, Rai, Sherpa, Gharti, Yakkha, Thakali, Limbu, Lepcha, Bhote, Byangsi, Jirel,

Halmu, Balung, Gurung, Dura, Tamang, Kumal, Sunuwar, Majhi, Danuwar, Thami, Darai, Bote,

Baram, Pahari, Hayu, Kusunda, Chepang, Raji, Raute

2.1.3 Literacy

The literacy rate of LSMC is 80.9 percent, which is higher than the national urban literacy rate of 71.55

percent and much higher than the national literacy rate of 54.1 percent. Among the literate population

56.6 percent are male and 43.4 percent female. The female literacy rate in LSMC too is higher than the

national (39.67 %) and national urban (41.71 %) female literacy rate.

2.1.4 Employment

In LSMC, 5.2 percent of the people are unemployed. This is less than the national average for the urban

population. It shows that unemployment is less compared to other urban regions in the country, though it

is slightly more than the overall national unemployment rate of 4.9 percent. (LSMC – Base Line survey

1999).

2.1.5 Settlement Pattern

The settlement pattern of LSMC shows the consonance with the traditional urban settlement pattern of

human history. The immediate area surrounding the Durbar Square was allocated for priests, noble men,

and people belonging to high castes. Next to this were people of the business community, craftsmen,

farmers, and workers. To the outermost boundary or the periphery of the city were lower class groups

such as cleaners and butchers. Agricultural land extended beyond the city core areas. The

conglomeration of people belonging to a particular caste or Jaat which also defined their occupation

7 Low caste “untouchables”.

8 Defined as indigenous nationalities.




group, at one particular location in city, and the benefit they got from being at that particular location in

relation to their work and activity, suggests some sort of zoning in early days. In other words the city was

zoned by caste or Jaat.

The project area wards, namely 16, 18, 21, 22, lie outside of the Durbar Square area. As per the zoning

by the Kathmandu Valley Town Development Committee, the project wards fall into two sub-zones of the

core city area:the conservation sub zone and the mixed old residential sub-zone. The conservation sub-

zone consists of houses, buildings, and temples etc. of traditional style and reflecting age old urban

character with various stages of historical development. The buildings typically surround courtyards with

interconnecting pedestrian passage ways. The mixed old residential sub-zone includes that part of the

core area not covered by the protected monuments sub-area and conservation-sub area. It retains many

traditional buildings but also more recently constructed buildings.

2.1.6 Income

If we categorize the population according to the income per annum, most of the households in LSMC

(57.6%) belong to the lower medium category, and 25.6 percent of the households belong to the medium

category. The number of poor households is 12.6 percent and a very small segment (4.2 percent) is the

upper medium and rich. LSMC is not particularly poor, with only 12.6 percent of households being

defined as income poor. However, neither is it wealthy as more than 70 percent of the people belong to

the poor and lower medium categories. In Lalitpur, poverty is multidimensional and includes social

segregation, discrimination, lack of voice, vulnerability to shocks and poor access to public infrastructure

and services (e.g., water and sanitation, health care and education). These dimensions of poverty

reinforce disempowerment and exclusion from income generating opportunities.

2.1.7 Economy

Since historic times, LSMC has been known for its sound economics, which depended largely upon

agriculture, trade and commerce, particularly in agricultural products from the fertile land on its fringes

and artistic products of wood, bronze and copper. With its once fertile agricultural land being transformed

for urban use, today agriculture forms only a small part of its economy. The business and service sector

is now the largest contributor to its economy.

LSMC being one of destinations for tourists visiting Nepal, the business related to tourism has developed

significantly. Many tourists visiting Nepal visit LSMC at least once. Known for its art and craftsmanship,

the business related to traditional handicrafts has seen a boom with huge orders being received from

several foreign countries. The city has become a trade center for these traditional products.

2.1.8 Infrastructures

2.1.8.1 Water Supply and Sanitation

The historical city was established over 2000 years ago. The Kirat regime constructed rain-fed ponds

and springs. Later the Lichhavi kings linked the ponds to stone spouts and dug wells to provide water to

the city. These structures were expanded during the Malla regime, when elaborate networks of canals,

ponds, and water conduits were constructed. The historical system was neglected after the introduction

of piped water system to Lalitpur about a century ago. The stone spouts have been further affected by

the recent uncontrolled exploitation of ground water and the destruction of former rainwater collection

ponds and recharge areas. In the summer season most of the stone water spouts provide water for three

to four months regularly but the flow decreases during other remaining months, in many cases drying up

completely. A study conducted by the culture and archeology unit of LSMC revealed that out of 61 total




stone spouts, 44 spouts are working properly, 10 have dried up, and 7 are out of order. The stone spouts

of the project area wards are as follows.

S.N Name of spout Number of

taps

Ward no Name of tole9 Site

1 Naga BahalHiti 3 16 Naga Bahal Settlement area

2 NabahiHiti - 16 Nabahil Settlement area

3 Tapa Hiti A 3 22 Nayatole Settlement area

4 Tapa Hiti B 3 22 Nayatole Settlement area

5 AlakoHiti 5 22 Ikhachen Settlement area

6 SithaHiti 1 22 Kumbeshwor Open area

7 AmritHiti 2 22 Kumbeshwor Settlement area

8 DathuHiti 1 22 Kumbeshwor Open area

9 WasaHiti 2 22 Kumbeshwor Open area

10 KontiPukhuHiti 1 22 Kumbeshwor Settlement area

11 MishaHiti 7 22 Kumbeshwor Settlement area

12 KontiHiti 5 22 Kumbeshwor Settlement area

13 Saithu Ganesh

Hiti

1 22 Kumbeshwor Settlement area

Many households in the project wards are dependent on stone spouts for water. Regardless of whether

or not a household has a water supply connection, many residents of LSMC including those living in the

four project wards are desperate for water most of the year. Most of those with water supply connection

receive intermittent service of an hour or so a day or even on alternate days in many areas, at very low

pressure. Households not connected to the official water supply network rely on a variety of sources,

including shallow tube wells of uncertain quality, and on the stone spouts.

Due to the inadequate availability of water, sanitation conditionsare also po or in the project wards.

Deprivation is apparent in the pervasiveness of poor nutrition and sanitation for most families.

2.1.8.2 Housing Pattern

The quality of housing is very poor in the project wards. Traditional houses often have suffered from

serious neglect and/or have been damaged by inappropriate additions (such as adding floors above

traditional houses, thereby undermining the structural soundness of the houses). New houses typically

have been built without consideration for building by-laws and thus are at risk of collapse when there will

be an earthquake. Houses are clustered around courtyards connected to each other and the streets

through narrow passage ways that pose a serious disaster risk – collapse of such passageways would

leave the inhabitants trapped inside the courtyards.

2.1.8.3 Cultural and Architecturally Important Places in Project Wards

Lalitpur city was planned around Vihars and Bahils10

. Out of the 295 Vihars and Bahils of the valley 56%

are in Patan.Water conduits, stone spouts, artistic gate ways, Hindu temples and Buddhist Vihars adorn

the city. In the project wards, there are several artistic gate ways, Hindu Temples and Buddhist Vihars.

The LSMC has maintained a culture of craft work even in the face of rapid urbanization and many social

and political upheavals. Some of the famous archeological and cultural places within the project area

9 A tole is a neighborhood within a ward.

10 Monasteries.




include: Krishna Mandir (Gabahal), Ganesh Pati11

(Gabahal), Nakabihar, RatnakarMahabihar,

BalkhaPati, TilingeshworMahadev (Balkha), Balkha Math, SaraswotiMandir, BishwokarmaMandir,

KayonaniChaitya, VishwokarmaAvtar, HastinagarMahavihar, Swotha Narayan Mandir, Uma

MaheshworMandir, Hari Shankar Mandir to name a few.

11

A pati is a shaded resting area, which may be incorporated into a building or be self standing, open on one

or more sides.




CHAPTER III: REGULATORY AND LEGAL FRAMEWORK

All municipal investments and sub-grants under the Project must be consistent with the applicable laws,

regulations, and notifications of the GoN that are relevant in the context of the proposed

interventions/activities. The LSMC and the concerned line departments/agencies will ensure that the

municipal investments and sub-grants proposed and executed under PPURP are consistent with the

regulatory and/or legal framework, whether national, state or municipal/local. Additionally, it is also to be

ensured that activities are consistent with the World Bank’s operational policies and guidelines. This

section is not a legal opinion on the applicability of the law but serves as guidance in the application of

the various laws and regulations to the current project context.

3.1 Key Applicable National Environmental Laws and Regulations

This section highlights the salient features of selected laws that may have a bearing on the design and

implementation of the project. A summary of such applicable rules and regulations is furnished in the

table below:

Applicable Environmental Policies, Acts, and Regulations

Act/Regulation Key Requirement/s or Salient Features Applicability

Environmental

Protection Act, 2053 BS

(1997)

Any development project, before implementation, to pass through

environmental assessment, which may be either IEE or an EIA

depending upon the location, type and size of the project.

May apply. Depending

on the location, type

and size, a sub-grant

may require an IEE or

an EIA. But for PPURP

activities requiring EIA

are excluded.

Environmental

Protection Rule, 2054

BS (1997; Amendment,

1999)

Obliges the proponent to inform the public on the contents of the

proposal in order to ensure the participation of stakeholders.

Yes. This would apply

to individual sub-grants

as well as the overall

operation.

National Environmental

Impact Assessment

Guidelines, 2050 BS

(1993)

The guidelines provide guidance to project proponents on

integrating environmental mitigation measures, particularly on the

management of quarries, borrow pits, stockpiling of materials and

spoil disposal, operation of the work camps, earthworks and slope

stabilization, location of stone crushing plants, etc.

Yes. Applies to civil works

related to the

construction/

improvement of facilities/

infrastructure in the

project area.

Solid Waste

Management Act2011

Solid Waste Management Act aims to manage solid waste and

mobilize resources related thereto and ensure the health

convenience of the common people by controlling the adverse

impact on pollution from solid waste. The commercial or industrial

establishments should adhere to the clauses mentioned in the act

during the construction and operation phases of the projects.

May apply – depends

on type of waste

generated during

construction and

operation of facilities

supported by the

project.

Ancient Monument

Preservation Act, 2013

BS (1956)

It is deemed necessary to conserve, maintain and renovate the

private ancient monuments of importance from national and

international views, by the Department of Archeology. The DoA

may conserve, maintain and renovate such ancient monuments.

Yes.

The Labor Act, 2048 BS

(1992)

Regulates the working environment and deals with occupational

health and safety aspects.

Yes.

Local Self Governance

Act, 2055 BS (1999)

Empowers the local bodies for conservation of soil, forest and

other natural resources. Sections 28 and 43 of the Act provide the

municipality, District Development Committees (DDCs), and

Village Development Committee (VDCs) a legal mandate to

formulate and implement programs related to

Yes.





protection/conservation of environment during the formulation and

implementation of a district level plan. The Act also governs the

participatory process for works relating to participatory planning,

autonomy of local governments, community mobilization,

community monitoring, measures for marginalized groups,

including women, etc.

The Interim Constitution

of Nepal, 2063 (2007)

It has provisions of rights regarding environment and health.

Every person shall have the right to live in a clean environment;

every citizen shall have the right to get basic environmental

services free of cost from the State as provided for in the law.

Yes

Kathmandu Valley

Building By-Law,

2007(2064 BS):

The legislation mainly focuses on managing the impacts of

increasing population pressure and unplanned urbanization in the

valley. The legislation also aims to mitigate the impacts of

haphazard construction activities in the valley. The standards

imposed to develop apartment building residences include

FAR should be 3.5

Front part setback should be minimum 6 m.

The minimum width of road adjacent to co-owned

apartment building residence or roads connected to

adjacent roads should be at least 8 m.

Other directives will be as per the Residential Ownership

Act, 1997

Yes

National Building Code

of Nepal, 1993(2050

BS)

There are 23 different title-wise volumes of building code, which

form a single national building code of Nepal, 1993. The National

Building Code was prepared in 1993 by then Ministry of Housing

and Physical Planning (now MoUD). This code emphasizes the

need for changes and improvement in the current building

construction design and methods. The publication represents a

standard of good practice.

Yes

National Urban Policy,

2007 (2064 BS)

The National Urban Policy 2007 aims to promote a healthy,

livable, safe, and economically vibrant urban environment though

planned provision of infrastructure services, facilities and

amenities that ensure improved quality of life of urban people.

Other aspects of the policy include:

- Importance of environment conservation while carrying out

urban development works and natural resource utilization.

- Promoting development of compact city/towns/settlements.

- Preparation and implementation of “Disaster Management Plan”

by local government agencies to cope with the loss of lives and

properties resulting from natural disasters.

Yes

Climate Change Policy

GoN, 2001

Addresses the issues of climate adaption and disaster risk

reduction. Forecasting water-induced disasters, reducing

vulnerabilities and providing early warning information for disaster

management are some of the key points of the policy. The policy

provides some guidelines to address the issues of vulnerable

infrastructure in the context of reducing their risk to climate related

disasters.

Yes.

Three Years Plan,

National Planning

Commission,2011/12-

2013

Requires that all projects be formulated and implemented based

on methods that optimally utilize local skills and resources and

generate employment opportunities. In the building, residents and

urban development section the plan clearly set its long-term vision

of managing haphazard urbanization through physical planning.

Public and private buildings will be constructed by using local

technology and raw materials as far as possible. To meet the long

Yes.





term vision, an objective has been set for the construction of new

buildings which is secured, resistant and environmental friendly.

This project will utilize the local technology and materials as far as

possible to make the project environmentally sound. The plan

also requires that the social concerns relating to equity,

community participation are taken into account in project planning

and implementation.

ILO Convention on

Indigenous and Tribal

Peoples, 1989

(No.169)

In 2007, the UN Declaration on the Rights of Indigenous

Peoples was adopted by the General Assembly. Nepal

ratified ILO Convention No. 169 on September 14, 2007 (BS

2064/05/28). Article 1 of the convention provides a

definition of tribal and indigenous peoples.

Article 6 requires consultation with the peoples concerned

through appropriate procedures and, in particular, through

their representative institutions, whenever consideration is

being given to legislative or administrative measures which

may affect them directly.

In Article 15, it states that indigenous and tribal peoples

shall, wherever possible, participate in the benefits of

natural resource utilization activities and shall receive fair

compensation for any damages which they may sustain as a

result of such activities.

Article 16(2) clearly mentions that where the relocation of

these peoples is considered necessary, such exceptional

measures and such relocation shall take place only with

their free and informed consent.

Where their consent cannot be obtained, such relocation

shall take place only following appropriate procedures

established by national laws and regulations, including

public inquiries where appropriate, which provide the

opportunity for effective representation of the peoples

concerned.

Article 16(3) mentions that, whenever possible, these

peoples shall have the right to return to their traditional land

as soon as the grounds for relocation cease to exist.

Article 16(5) specifies the persons thus relocated shall be

fully compensated for any resulting loss or injury.

Yes. IAs indigenous

peoples are present in

the sub- project area,

the convention

requirements are

applicable to the

proposed project.

Information and

Communication Policy,

2059 BS

The policy has developed long-term requirements for information

and communication.

Yes.

3.2 Key Applicable National Social Laws and Regulations

There are a several laws addressing social issues in Nepal. The policies relevant to the project are

briefly explained below.




Table Applicable Social Policies, Acts, and Regulations

Act / Regulation Salient Feature/s Applicability

The Interim

Constitution of Nepal

2063 BS (2007)

The interim constitution of Nepal, 2007 focuses on raising the

standards of living of the general public. The Article 35 (1) asserts

that; The State shall pursue a policy of raising the standards of

living of the general public through the development of

infrastructures such as education, health, housing and employment

of the people of all regions, by equitably distributing investment of

economic investment for the balanced development of the country.

Yes

Labour Act, BS 2048

(1992)

This Act classifies those persons younger than 15 years as

children and those between the ages of 15 and 18 as ‘’Nabalik.’

The act specifies that working hours for Nabalik and women must

be between 6 a.m. and 6 p.m. and prohibits night working hours for

women. Children are prohibited from working.

The Act also states that equal opportunity shall be given to women

as that of men. Regular work hours for other employees must not

exceed 8 hours in a day and 48 hours in week. For work

conducted beyond that period, over time allowances must be paid

at the rate of 150% of the normal hourly wages, not to exceed 4

hours each day. According to this act, employee wage rates shall

not be less than the rate fixed by the concerned GoN offices.

Yes. The act is

mandatory and directly

relevant to

implementation of the

proposed project

activities. It provides for

the mode of appointment,

working hours, control of

child labor, equal

remuneration and other

labor requirements.

National Foundation for

Upliftment of

Adivasi/Janjati Act,

2058 (2002)

Government of Nepal has identified and legally recognized 59

indigenous communities. They are officially referred to as

AdivasiJanajati in Nepali and Indigenous Nationalitiesin English

as per the National Foundation for Upliftment of Adivasi/Janjati Act,

2058 (2002). One can find vast disparities in terms of socio-

economic standing among the Adivasi and Janajati groups.

According to Nepal Federation of AdivasiJanajati (NEFIN) 10 of the

59 AdivasiJanajati are "endangered", 12 "highly marginalized", 20

"marginalized", 15 "disadvantaged" and 2 are "advanced" or better

off on the basis of a composite index consisting of literacy,

housing, landholdings, occupation, language, graduate and above

education, and population size.

Yes

Right to Information

Act, 2064 (2007)

The aim of this act is to make the functions of the state open and

transparent in accordance with the democratic system and to make

it responsible and accountable to the citizens. It intends to make

the access of citizens to the information of public importance held

in public bodies simple and easy and to protect sensitive

information that could have an adverse impact on the interest of

the nation and citizens.

Clause 3 of the act ensures the Right to Information. It says that

every citizen shall, subject to this Act, have the right to information

and they shall have access to the information held in the public

Bodies unless confidentiality has been maintained by laws.

Clause 4 of the act describes the Responsibility of a Public Body to

disseminate information. It mentions that each Public Body has to

respect and protect the right to information of citizens. Public

Bodies shall have the following responsibilities for the purpose of

protecting the right to information of citizens:

to classify and update information and make them public, publish

and broadcast to make the citizens' access to information simple

and easy,

Yes




Act / Regulation Salient Feature/s Applicability

to conduct its functions openly and transparently,

to provide appropriate training and orientation to its staffs,

Public Bodies may use different national languages and mass

media while publishing, broadcasting or making information public.

A Public Body shall arrange for an Information Officer for the

purpose of disseminating information held in its office.

The clause 7 of the act prescribes the Procedures of Acquiring

Information. It states that a Nepali Citizen, who is interested to

obtain any information under this Act, shall submit an application

before a concerned Information Officer by stating the reason to

receive such information.

3.3 Applicable World Bank Policies

The World Bank's environmental and social safeguard policies (ten of them) are a cornerstone of its

support to sustainable poverty reduction. The objective of these policies is to prevent and mitigate undue

harm to people and the environment in the development process. These policies provide guidelines for

the identification, preparation, and implementation of programs and projects.

The following operational policies of the World Bank are relevant for PPURP from an environmental and

social viewpoint:

Safeguard Policies Triggered in PPURP

Safeguard Policies Triggered by the PPURP Yes No

Environmental Assessment OP/BP 4.01 X

Natural Habitats OP/BP 4.04 X

Forests OP/BP 4.36 X

Pest Management OP 4.09 X

Physical Cultural Resources OP/BP 4.11 X

Indigenous Peoples OP/BP 4.10 X

Involuntary Resettlement OP/BP 4.12 X

Safety of Dams OP/BP 4.37 X

Projects on International Waters OP/BP 7.50 X

Projects in Disputed Areas OP/BP 7.60 X

3.4 Environmental Assessment (OP/BP 4.01)

OP/BP 4.01 is triggered because the activities/interventions proposed under PPURP may have low

impacts on the natural environment and human health.

Environmental Assessment is used by the World Bank to identify, avoid, and mitigate the potential

negative environmental impacts associated with the Bank’s operations early on in the project cycle. The

policy states that Environment Assessment (EA) and mitigation plans are required for all projects having

significant adverse environmental impacts or involuntary resettlement. Assessment should include




analysis of alternative designs and sites, including the “no project option” and require public participation

and information disclosure before the Bank approves the project.

In World Bank-funded operations, the purpose of Environmental Assessment is to improve decision

making, to ensure that project options under consideration are sound and sustainable, and that

potentially affected people have been properly consulted and their concerns addressed. The World

Bank's environmental assessment policy and recommended processing are described in Operational

Policy (OP)/Bank Procedure (BP) 4.01: Environmental Assessment.

3.5 Physical Cultural Resources (OP/BP 4.11)

Physical Cultural Resources (OP/BP 4.11) is triggered because there are cultural sites in the project

area.

The World Bank Policy OP/BP 4.11 defines physical cultural resources as movable or immovable

objects, sites, structures, groups of structures, natural features and landscapes that have archaeological,

paleontological, historical, architectural, religious, aesthetic, or other cultural significance. Physical

cultural resources may be located in urban or rural settings, and may be above or below ground, or

under water. Their cultural interest may be at the local, provincial or national level, or within the

international community.

The Bank assists countries to avoid or mitigate adverse impacts on physical cultural resources from the

development projects that it finances. The impacts on physical cultural resources resulting from project

activities, including mitigating measures, may not contravene either the borrower’s national legislation, or

its obligations under relevant international environmental treaties and agreements. The borrower

addresses impacts on physical cultural resources in projects proposed for Bank financing, as an integral

part of the environmental assessment (EA) process. The World Bank will also follow compliance with

Nepal’s chance find policy.

Norms and procedures for the conservation and restoration of historic buildings and for dealing with

chance finds during small works will be specified. The conservation and restoration of historic buildings

will use traditional materials and construction techniques as per the specifications of the Department of

Archeology. A protocol for use by the construction contractors and/or local communities in conducting

any excavation work will be developed, to ensure that any chance finds are recognized and measures

are taken for their protection and conservation. As per the agreed protocol, all excavation work at the

site would need to stop when there are chance finds of archaeological material until the Department of

Archeology determines if the site needs to be documented or scientifically excavated. The protocols and

protective measures will be included in the EMPs that will be prepared for specific initiatives, with a focus

on consultations and participation of the local stakeholders. (See section 4.3.3)

3.6 Indigenous People (OP/BP 4.10)

Indigenous People (OP/BP 4.12) is triggered because of the presence of janajati in the project area. The

traditional population of LSMC is Newar and even with migration the proportion of Newar in the city

remains high. Although many Newar are relatively well off, by law Newars are considered to be

janajatis.The Newar retain collective attachment to Lalitpur, returning to the historical area for many

cultural and religious activities. Hence the triggering of this safeguard policy. Dalits and other vulnerable

groups are also present in the project area.




This policy states that any development process under World Bank financing should fully respect the

dignity, human rights, economies, and cultures of Indigenous Peoples (IPs). The project should engage

in a process of free, prior, and informed consultation with IPs that should result in broad community

support to the project by the affected Indigenous Peoples.

Projects should include measures to avoid potentially adverse effects on the IP’s communities or when

avoidance is not feasible, minimize, mitigate, or compensate for such effects. They should ensure that

the IPs receive social and economic benefits that are culturally appropriate and gender and inter-

generationally inclusive.

3.7 Involuntary Resettlement (OP/BP 4.12)

As per World Bank policy, Involuntary Resettlement (OP/BP 4.12) is triggered in case disruption of

informal sources of income happens due to project interventions. The project interventions however,

don’t involve any involuntary land taking.

OP/BP 4.12 recognizes that involuntary land-taking resulting in loss of shelter, assets or access and

income or sources of income should be addressed by World Bank-financed projects. Displaced persons

should be meaningfully consulted, given opportunities to participate in planning and implementing

resettlement programs and assisted in their efforts to improve their livelihoods and standards of living.

Absence of legal title to land should not be a bar for compensation, resettlement, and rehabilitation

assistance. Vulnerable groups such as IPs, women-headed households, and senior citizens should be

entitled to special benefit packages in addition to compensation and resettlement. The Operational Policy

is applicable whenever there is involuntary land taking resulting in displacement of people and / or loss of

livelihood or source of livelihood.

In this project there will be no involuntary land taking although there could be temporary business

disruptions, and obstruction to access resulting in loss of income.




CHAPTER IV: POTENTIAL ENVIRONMENTAL AND SOCIAL IMPACTS

AND THEIR MANAGEMENT

4.1 Likely Beneficial Impacts

The beneficial impacts of the proposed project are discussed below.

The proposed project aims to improve local services and public spaces, promote local heritage and

develop income-generating activities linked to cultural industries in selected distressed neighborhoods’ of

the historic core of Lalitpur City. The pilot would contribute to improving living conditions and enhancing

cultural identity and awareness, and the value and acceptance of cultural diversity in the project area.

The pilot would also provide economic opportunities to the poorest members of the communities through

income-generating activities linked to cultural industries (handicrafts and tourism) and small works. From

a poverty reduction perspective, cultural industries such as handicrafts and tourism development have

many comparative advantages over other sectors, when they are properly managed. Handicrafts

development has: (a) high employment potential and the ability to provide an alternative source of

income that allows part-time and/or home-based work for women and disadvantaged groups; (b) low

capital investment requirements with significant potential for value added products; and (c) ability to

sustain and capitalize on high levels of skill and artistry. Sustainable tourism development: (a)

contributes to diversifying local economies, especially in poor areas with few other export and

diversification options; (b) offers labor-intensive and small-scale employment opportunities, employing a

high proportion of women and young entrepreneurs; (c) values cultural aspects and natural resources

that may be among the very few assets belonging to the poor; and (d) provides opportunities for local

communities to sell goods and services by bringing the consumer to the destination.

At this stage only the generic interventions are known. Exact project interventions will be identified during

implementation. After knowing the exact type and nature of interventions, detailed assessment would be

done in the context of beneficial impacts, its extent, and type and nature of beneficiaries as well as per

the rules specified in this ESMF.

4.2 Likely Adverse Impacts

4.2.1 Environmental

The specific interventions planned for PPURP may have some limited adverse environmental impacts in

the short term. The adverse or negative impacts related environmental issues are elaborated below:

Potential construction period impacts or temporary impacts to residents, government facilities and

businesses in the project areas of the participating wards of LSMC

Issues related to noise, air, and water pollution during construction. These issues are prominent

during the construction activities of civil works like construction of pavements, repair of roads and

sidewalks, renovation of ponds, stone spouts etc.

Issues related to temporary disruption to basic services (water supply, electricity, telephones)

Issues related to impacts on recharge areas/acquirers due to construction of structures, storage of

materials, encroachment etc.

During construction, motorists and pedestrians in the project area may experience some delays and

detouring. Some streets would be closed during construction and others would be subject to periodic

lane closures. Further delays would occur as construction trucks and equipment use local streets.




Possible short-term concerns such as environmental health hazards from crafts activities, use of

inappropriate/ hazardous materials in rehabilitation works, risks to the traditional/ cultural structures,

and increased dust, noise and construction debris from the construction of small-scale infrastructure

works, issues related to storage of construction materials in road and disturbance to traffic, issues

related to occupational health and safety of workers, and issues related to disaster risks.

Degradation of cultural sites

Risks related to not reporting of chance find during the excavation, cultural and archeological issues

during the construction and renovation of structures.

Obstruction to tourists and visitors to temples, architectural places during the construction period of

civil works.

4.2.2 Social

The specific interventions planned for PPURP may lead to some temporary loss of

livelihood/trade/occupation. Implementation of PPURP may adversely affect commercial, industrial or

institutional activities in the project area on a temporary basis. This includes temporary disruption of

informal sources of income (e.g, temporary displacement of informal vendors):

Loss of access to common resources and facilities. During the implementation of PPURP, the

households may have limited or no access to civic amenities for short periods of time (during

construction/repair of certain urban amenities).

Risks associated with inadequate and lacks of public consultations and information disseminations

and its impact on PPURP planning and implementation.

Risks associated with non identification of vulnerable communities, lack of gender sensitive planning,

and non consideration of disruption of informal sources of income due to project interventions.

4.3 Generic Mitigation Measures for each Identified Potential Impacts

The possible generic construction phase impacts of PPURP interventions and suggested mitigation

measures are elaborated below:

4.3.1 Physical Environment

Identified Impacts Suggested Mitigation Measures

Impacts related to digging of foundation

The excavated materials shall be used as construction material (as applicable).

The unused materials shall be given to the needy.

Impacts of air pollution (particularly dust)

and its impacts on surrounding

environment

Vehicle speed control and sprinkling of water on roads and in construction sites

on a regular basis. The construction material shall be properly storedand

covered during the transportation of materials.

Impacts related to noise created by the

vehicle used for the transportation of

construction material

Nighttime construction work shall not be allowed. Vehicle speed shall be

controlled and the vehicle used shall be maintained. Use of old and worn out

vehicles shall be avoided to control noise pollution.

Impacts related to stockpiling of

construction material during civil works

Construction material shall be stored/stock piled in designated areas (fenced and

secured, covered).

Impacts related to traffic obstruction and

traffic management due to the movement

of construction vehicles

Adequate traffic signs, warning signs, and scheduling of transport operations

outside office hours to avoid traffic congestion and inconvenience to people.

Possibility of contamination of water

sources due construction activities.

Protection of water sources

Impacts related to health and safety of

workers, and visitors during the

construction period

Use of safety signs in places, fencing of active work places/construction sites,

provision of Personal Protective Equipment (PPE) to workers.

Impacts related to obstruction and Adequate safety signs shall be used in construction areas, alternative routes for




Identified Impacts Suggested Mitigation Measures

disturbances to tourists visiting historical

and cultural sites

tourist to visit such places shall be arranged during the construction phases.

Impacts related to wastes during

construction and operation phases of the

project

Proper management of waste during construction and operation phases of the

project. Prohibition of littering and illegal dumping of waste in premises and their

surroundings.

Impacts to recharge areas/aquifer. Such activities would be excluded.

Physical damages and other Impacts due

to use of heavy equipment in inner core

areas of recipient ward

Use of heavy equipment will be avoided as far as possible

4.3.2 Biological Environment

S.N Identified Impacts Suggested Mitigation Measures

1 Impacts related to disturbance to

flora and its cutting/removal during

construction period

Cutting/removal of large flora would be excluded. Only weed and small tree

removal from courtyard will be permitted.

4.3.3 Socio-economic, Cultural, and Archaeological Environment


1 Disturbance to local residents due

to obstruction to their access,

pollution, etc.

Prior information dissemination to the public regarding the nature, schedule of

work in advance

Timely completion of work to minimize disturbance

Adherence to pollution control measures as elaborated above.

2 Pressure on local infrastructures

due to influx of workers

Record keeping of workers

Provide orientation and training to workers for maintaining social harmony,

prohibition of ill-social behaviors (alcohol, gambling, etc.)

Local people shall be engaged in construction as per their skills and

qualifications.

3 Obstruction to

worshippers/pilgrims/visitors for

entering temple premises during

renovation of temple, shrines,

stupa (semi hemispherical

structure containing Buddhist

relics)

The access shall be provided to the priest/care taker of the temple/shrines for

certain hours of each day, so that the priest and visitors can visit the temple.

4 Issues related to chance finds

during excavations or other works

as well as other cultural issues

encountered during works on

physical cultural resources

The new construction in any means shall not deteriorate the “authentic nature” of

the temple/shrines/or any structure of archeological importance..

Department of Archeology (DoA) norms for materials, size/shape, shall be

followed. Encourage representatives from DoA to be present during the

excavation period. The LSMC shall follow the Ancient Monument Preservation

Act, 1956 of GoN in addition to the following requirements.

(i) The municipality shall develop a protocol for use by construction

contractors in conducting any excavation work, to ensure that any

“chance finds” are recognized and measures are taken to ensure they

are protected and conserved. Part of this protocol will be that when

“chance finds” of archaeological material occur, all excavation work at

the site shall stop until the DoA can determine if the site needs to

be documented or scientifically excavated before work continues.

(ii) All materials used in the repair and restoration of historical buildings

and their surroundings (plinths, walls, stairs, paving etc.) shall be of

traditional materials (e.g., lime mortar instead of cement, Jhingati roof

tiles, dachi brick, etc.) and be of high quality. The DoA will provide





specifications for such materials as wood (for columns, rafters, struts),

brick or stone (for paving, stairs, walls, plinths), lime mortar, and roof

tiles that shall be followed. Materials shall be checked at pre-shipment

and at delivery for compliance with specifications.

(iii) The construction techniques (joints, fasteners, etc.) shall be consistent

with the original temple construction techniques. While the design of

parts that must be replaced (e.g., struts, column bases) should be

consistent with and match the existing temple in scale, design, level of

detail, best practice would be to clearly indicate the difference between

old and new elements.

(iv) The materials and construction techniques shall be of such quality that

they shall not require major repairs or refurbishment and should be

sustainable over time with little beyond routine maintenance.

(v) Craftsmen with knowledge and skills applicable to the style and age of

the temple design shall be employed to do the traditional repair and

restoration activities (e.g., woodcarving, mortar preparation,

replacement of joists, etc.)12

5 Possible temporary disruption of

business activities

There should be no need to close shops and retail outlets for longer period.

However, the resettlement policy makes provision for compensation for

temporary business losses during construction.

12

As per Ancient Monument Preservation Act, 1956 of GoN, the chance find shall be reported to DoA. The DoA will treat

or manage chance finds.




CHAPTER V: ENVIRONMENTAL AND SOCIAL SCREENING AND

MANAGEMENT

Environmental and social considerations should be envisioned right from the stage of project

identification. In general, projects are identified on peoples' demand which is a good practice but when

environmental and social consequences of implementation of a project are not well thought through,

project implementation can lead to serious environmental and social problems and even failure of

projects sometimes. While identifying projects or collecting demands from the public, possible

alternatives should also be foreseen and noted. The PMT will collect information on the environmental

and social setting; possible beneficiaries and possible generally foreseen environmental and social

impacts of each alternative should also be taken from the proposers or demand providers. The

proposers demand providers and general public should be made aware of the environmental and social

consequences of project implementation and should be requested to choose environmentally and

socially acceptable projects right from project identification to avoid environmental problems at later

stages in PPURP.

5.1 Environmental& Social Screening

Every municipal investment and sub-grant proposal to be funded under the PPURP will be subject to an

environmental and social screening process before it is selected for inclusion in the project. The

screening process establishes the level of environmental and social assessment required and will apply

the exclusion criteria presented in Section 1.6. The screening process intends to identify relevant

possible environmental and social concerns as well as suggest any further investigation and assessment

as necessary. The sub-grant applicants will fill in a screening form with assistance from the PMT for

activities funded under the Pro-poor Community-based Initiatives Grant Window and the Pro-poor

Business Development Grant Window. The PMT will carry out the environmental and social screening

for the municipal investments implemented under the Pro-poor Municipal Investments and Initiatives

Grant Window.

5.2 Safeguard Categorization of Municipal Investments and Sub-grants

Primarily, the environmental and social screening exercise will be undertaken to determine the key

environmental and social issues/concerns and the nature and magnitude of the potential impacts that are

likely to arise on account of the proposed municipal investments and sub-grant interventions. The major

or key environmental and social issues to be identified will be determined by the type, location, sensitivity

and scale of the municipal investment and sub-grant intervention. The results/findings from this exercise

are/will be used to determine:

the need for detailed assessment

extent and type of Environmental Assessment (EA) required

the possibility of exclusion

The screening result will also be an important input for analyzing the ‘feasibility’ of the municipal

investments and sub-grant interventions along with engineering/economics and social criteria.

Screening of the municipal investments and sub-grant interventions will be done based on the prevailing

legal requirements to determine whether the activities are subject to, with respect to environmental

issues,(a) GoN's IEE (Initial Environmental Examination), (b) EIA (Environmental Impact




Assessment),(c) No-EA (Environmental Assessment) processes, or require (d) only EMP or the code of

practices and, with respect to social issues, to determine the need for conducting SIA (Social Impact

Assessment) or preparing a RAP (Resettlement Action Plan). Screening also determines whether

municipal investments and sub-grant proposals should not be included at all for funding under PPURP

should they be found to fall under the ‘negative’ list or ‘exclusion’ criteria set forth in this ESMF.

Flow of Safeguard Categorization for PPURP Activities

The Environmental Protection Act (EPA)/Environmental Protection Regulations EPR), 1997 of

Government of Nepal defines the projects which falls under IEE and EIA category as per annex 1, and

annex 2 of EPA

5.2.1 Category I : Municipal investments and sub-grant interventions

Activities requiring IEE based on legal requirements and potential environmental and social risks (basis

as per Environmental Protection Act/Regulations 1997 of GoN)13

.

Threshold environmental criteria for municipal investments/sub-grants requiring IEE are identified on the

basis of the Environment Protection Act and Regulations 1997 as well as based on potential short-to-

long-term adverse environmental and social impacts and their sensitivity. The PPURP sub-grants

requiring IEE should follow the schedules of EPA/EPR 1997. Each project requiring IEE should have the

respective assessment done prior finalizing Detailed Project Report (DPR). Such municipal

investments/sub-grants should prepare Environment Management Plan (EMP) for approval. An IEE

report will be prepared. In addition to thresholds defined by government regulation, potential adverse

impacts and environmental sensitivity will be duly considered while conducting the IEE study and writing

IEE report. The TOR for the IEE as well as the IEE report needs approval by the concerned ministry

(MoUD)14

. The IEE report will have a built-in EMP which will fully describe appropriate preventive and

curative mitigation measures and their implementation procedures. The environment experts of the PMT

13

Civil works requiring EIA are excluded from this project. 14

The Initial Environmental Examination (IEE) shall be approved by the concerned ministry, i.e the project

related to energy is approved by the ministry of energy, and project related to urban development is approved

through the Ministry of Urban Development.

Screening of Municipal Investments and Sub-grants

Interventions

Activities Requiring

Code of Practices

Activities Requiring EMP Activities Requiring IEE Activities requiring EIA

(excluded from PPURP)

Monitoring and Reporting




formed at LSMC will be responsible to ensure that safeguard requirements are met. The process for

conducting IEE is shown in a flow diagram (Annex2). For municipal investments and sub-grants

requiring IEEs, construction work will start only after the approval of IEE by the concerned ministry.

5.2.2 Category II municipal investments and sub-grant interventions

Municipal investments and sub-grants which don’t require IEE, but may have some minor to moderate

degree of environmental and social issues.

Such municipal investments and sub-grants require EMP. The format and table of content for preparing

EMP is included in Annex 3. The following process will be followed to prepare the EMP:

Phase I: Preparation of EMP. The EMP is an overall plan, which addresses the minor to moderate

safeguard issues arising from implementation of the municipal investments and sub-grants and suggests

a strategy and action plan to mitigate the adverse environmental and social impacts and enhance the

beneficial impacts of the interventions. The EMP for a municipal investment or a sub-grant consists of

the set of mitigation, monitoring, and institutional measures to be taken during implementation and

operation to eliminate adverse environmental and social impacts, offset them, or reduce them to

acceptable levels. The plan also includes the actions needed to implement these measures. An EMP is

required for all category II municipal investments and sub-grants interventions under PPURP.

The EMP includes:

Site Specific EMP Activity Schedule, including cost for implementation of mitigation measures.

Site Specific EMP Monitoring Schedule, including monitoring responsibility delineation.

Cost Estimate for EMP Monitoring. This can include cost required for capacity building and training

activities basis as required.

The PMT will prepare the EMP for category II municipal investments and sub-grants. Sub-grant

applicants will be responsible for preparing the EMP with support from PMT and PSC. PMT will be

responsible for preparing the EMP for category II municipal investments with support from PSC.

Phase II: Approval of site specific EMP and Inclusion of site specific EMP Provisions in

Designs/Estimates After preparation of the EMP report, it has to be endorsed by PMT (subject to review

and clearance from the World Bank as described in Section 5.2.4). After its approval the provisions of

the EMP need to be included in the municipal investments and sub grant interventions’ designs and

estimates before final approval..

Phase III: EMP Implementation Phase. After approval, EMP provisions along with the municipal

investments and sub grant interventions ‘designs/estimates shall be implemented along with construction

works. The responsibility of overall EMP implementation as well monitoring implementation for the

category 2 sub-grant interventions shall lie with PMT.

5.2.3 Category III municipal investments and sub-grant interventions

Municipal investments and sub-grant interventions which don’t fall into categories I and II shall follow

Codes of best practices during the construction and operation phases.




Environmental codes of practices provide technically specified solutions illustrating the general principles

of environmentally sound and sustainable planning, design and construction. This will help to enhance

positive impacts and to avoid or lessen adverse or negative impacts. This environmental code of

practices should be applied in conjunction with the standard technical standards for preparation of

designs of civil works. There are generic and project specific best practices as well. The generic

environmental best practices to be followed for PPURP municipal investments and sub-grant

interventions are elaborated below:

Solid Waste Management should be based on Reduce, Reuse, and Recycle (3R) principles:

Generation of solid, semi-solid and liquid waste requires proper on site management and scientific

disposal.

As there are settlements around the project area, no or few nuisances to the community should be

produced. Examples: use of less noisy equipment and no work during night hours as well as

adoption of Environmentally Sound Technologies (energy efficient system design, selection of less

polluting technology) in civil construction.

Health and Safety Standards (e.g., use of personal protective equipment, use of safety signs) should

be adopted in construction activities, and in activities related to manufacturing and promotion of

handicrafts.

Environment, Health, and Safety (EHS) related orientation and job specific training should be

provided to employees

Adherence to GoN Rules, Regulations, Policies and World Bank policies, and compliance with

formats and checklists developed by ministries

Correction of shortcomings, periodic review meetings, clear assignment of roles and responsibilities

There should be no or limited impact on local natural resources. In case of impacts, proper mitigation

measures should be devised to address it.

Water and energy management strategies should be in place while selecting activities under

PPURP.

Environmentally friendly technologies and environmental conservation measures like tree plantation,

awareness raising in environmental (including cultural and archeological) should be promoted.

Information dissemination and public consultations should be an integral part of all activities under

PPURP.

The generic Environmental Codes of Best Practice can be adapted to certain types of Category III sub

grants. The Codes of Best Practice will be included in the clauses of the contractual agreements. These

will be modified and improved and revisions will be made during project implementation phase as

needed.

5.2.4 The Roles and Responsibilities of the World Bank

The role of World Bank is to ensure that the PPURP is in compliance with GoN and World Bank

requirements. For this purpose, Initial Environmental Examination (IEE) reports and EMPs of each sub-

grant/activity and EMP will be reviewed and “no objection letter” shall be provided by the World Bank

prior to start implementation. For activities, which require code of best practices, PMT can directly

approve.

5.3 Management of Social Safeguards

The key steps are the same as for dealing with the environmental issues – screening, assessment and

preparation of mitigation plans. These steps are necessary to identify and address the potential social




concerns or impacts of a project right from the planning stage to its implementation and post-

implementation operations.

5.3.1 Social Screening (Including Resettlement Policy Framework, Indigenous People

(IP) and Vulnerable Community Development Plan, and Gender Development

Plan)

The envisaged activities and scope of PPURP are not expected to require SIA (Social Impact

Assessment) or RAP (Resettlement Action Plan). However, there may be short-term impact on livelihood

and access to facilities and properties of households. Such impacts (if any) shall be well documented.

Since the municipal investments and sub-grants under PPURP might create temporary business

disruption, the following types of losses, policy/entitlement frameworks are applicable and hence

discussed below.

Entitlement Matrix Showing Possible Losses in PPURP and Approach to Deal in Such

Circumstances

Types of Loss

Entitled Persons/family Policy/ Entitlement

Temporary land

acquisition (e.g. for

storage or access to a

drain or sewer)

The users of the

facility or

community or

group

Reconstruction to leave such facilities in an equal or better

condition than they were before, or

Cash compensation to the legal/community custodians at full

replacement cost without depreciation of deduction for

salvaged material; or

Negotiated relocation in consultation with the community

Business disruption

losses compensation

Ambulatory vendors

Permanent business

Different ambulatory

vendors

For permanent businesses, full closure of the shops during

construction is not expected, although road closures restricting

vehicle access may be expected in some places. Pedestrian

access will be maintained at all times. As a result, only partial

disruption to some businesses is expected. The resettlement

policy makes provision for compensation for business losses

during construction.

For ambulatory vendors, the business is very small and

generally can easily be temporarily moved from one location to

another. Usually, there are several alternative areas along the

existing roads where they could be relocated. The vendors’

losses are therefore considered as minimal. Ambulatory

vendors shall be provided relocation assistance. If ambulatory

vendors are o be displaced permanently, they shall be

provided for the loss of business and displacement allowances.

.

As a reference, the World Bank’s social screening criteria, RAP, and process for preparation of RAP are

included in annex 4.




5.3.2 Indigenous Peoples and Vulnerable Communities Development Framework (IP-

VCDF)

This Indigenous Peoples and Vulnerable Community Development Framework (IP-VCDF) is developed

to guide the preparation of municipal investments and sub-grants under the PPURP to ensure better

distribution of the benefits of the project activities with a focus on the adivasi/janajatisand other

disadvantaged social groups located in areas in which PPURP civil works takes place. The IP-VCDF is

developed based on the national policies/strategies as well as the World Bank’s Indigenous Peoples

Policy. The principal objectives of the IP-VCDF are to:

Ensure that the project engages in free, prior, and informed consultation with affected communities,

leading to broad community support for the project, with particular attention to vulnerable groups;

Ensure that project benefits are accessible to the vulnerable communities living in the project area;

Avoid any kind of adverse impact on vulnerable communities to the extent possible and if

unavoidable ensure that adverse impacts are minimized and mitigated;

Ensure vulnerable peoples’ participation in the entire process of preparation; implementation and

monitoring of the sub-grant activities;

Minimize further social and economic imbalances within communities; and

Develop appropriate training / income generation activities in accordance to their own defined needs

and priorities.

5.3.2.1 Relevant Policies on Indigenous People and other Vulnerable Communities

Nepal is a signatory to ILO convention on Indigenous and Tribal Peoples, 1989 (No.169). Besides

that Nepal does not have a standalone policy on Indigenous Peoples. However in the Three Year

Interim Plan (TYIP) (2007-2010), or the Tenth Plan,significant emphasis has been placed on delivering

basic services to the disadvantaged and Indigenous People (IPs), women, disabled and vulnerable

communities (VCs) such as Dalits and Adhibasi / Janajati. One of the main objectives of the Tenth Plan

is the implementation of targeted programs for the uplifting, employment and basic security of Dalits,

indigenous people and disabled peoples. The policy provision also outlines that the Government should

pilot strong and separate packages of programsfor the basic security of the vulnerable sections of

society. The Three Year Interim Plan (TYIP) (2007-2010) includes the following policies for inclusive

development of Dalits, Adivasi/Janajatisand other vulnerable groups:

Creating an environment for social inclusion;

Participation of disadvantaged groups in policy and decision making;

Developing special programs for disadvantaged groups;

Positive discrimination or reservation in education, employment, etc.;

Protection of their culture, language, and knowledge;

Proportional representation in development; and

Making the country’s entire economic framework socially inclusive.

The National Foundation for the Upliftment of Adivasi/Janajatis Act, 2058 (2002), the National Human

Rights Action Plan 2005, the Environmental Act 1997, and the Forest Act 1993 have emphasized

protection and promotion of vulnerable groups in general, IPs’ knowledge, and cultural heritage in

particular. In 1999, the Local Self-Governance Act was amended to give more power to the local political

bodies, including authority to promote, preserve, and protect the IPs’ language, religion, culture, and their

welfare.




The World Bank policy on indigenous peoples emphasizes the need to design and implement projects in

a way that fosters full respect for indigenous peoples’ dignity, human rights, and cultural uniqueness and

so that they:

receive culturally compatible social and economic benefits, and

do not suffer adverse effects during the development process.

5.3.2.2 Screening and Categorization of Impacts on IPs and VCs

These steps will be followed to assess impacts on IPs and VCs:

1. A social assessment will be carried out for the entire project at the beginning of the activities as part

of the pro-poor participatory planning process (component I)

2. Then a social screening will be carried out to determine whether IPs and VCs will be affected by the

activities as part of the environmental and social screening for the municipal investments and sub-

grants carried out at the identification stage

The screening will involve identifying IPs and VCs belonging to the area where the municipal

investments and sub-grant interventions will be undertaken, their population (number and ratio), and their

characteristics as compared to the main population in the project area through primary and secondary

data collection.

The social screening will provides the necessary information to determine impact including: (i) the

beneficiary population living within the impact zone of the municipal investments and sub-grants (ii) the

extent of land required (even temporary) and number of land owners affected (if applicable); (iii) impacts

on poor and vulnerable groups including needs and priorities for social and economic betterment; (iv)

other social impacts.

The screening report will also provides information about the potential damage / loss of common

community structures such as: water tanks and pipes, religious cultural monuments / sites, inner urban

roads, etc.

Municipal investments and sub-grants will be categorized according to the level of impacts on IPs and

VCs. The categorization will be determined by the type, location, scale, nature, and presumed magnitude

of potential impacts on IPs and VCs.The municipal investments and sub-grants will be categorized as

per the following table:




Table Categorization of Impact on IPs and VCs for Sub-grants

Category Determination of the type of Social Assessment Needed

Category A Municipal investments and sub-grants expected to have significant impacts15

that require an

Indigenous People (IP)/Vulnerable Group Development Program (VCDP)

Category B Municipal investments and sub-grants expected to have limited impacts that require specific

action for IP/ Vulnerable Groups in resettlement plans and/or social action plans

Category C Municipal investments and sub-grants not expected to have impacts on IP/ Vulnerable

Groups and, therefore, do not require special provision for IP/ Vulnerable Groups

The IP-VCDP Impact Categorization Form is presented in Annex5 (a). Based on the categorization for

screening impact, sub-grant specific and municipal investment specific IP-VCDPs will be prepared as per

the guidelines and sample IP-VCDP provided in Annex 5(b).In case of significant impacts (falling in

categories A and B) on IPs and VCs, the PMT will submit the IP-VCDP to the World Bank for clearance.

Short IP-VCDPs prepared as a part of ‘less impact’ or ‘no impact’ category will be internally evaluated.

The World Bank will periodically review and do random review of these documents.

5.3.2.3 Specific Measures to be followed while dealing with Vulnerable Groups

Specific measures for vulnerable groups including indigenous peoples, Dalits, minor ethnic communities,

women, and powerless communities are outlined below:

Ensure awareness raising, active participation and capacity building of the vulnerable communities

Ensure participation in awareness campaigns, project implementation and monitoring of vulnerable

groups

Ensure equal wages for similar work during implementation

Launch project information campaign to inform the target groups about the key features of the project

and the municipal investments and sub-grant interventions implemented under the project.

Asses and analyze the presence of indigenous and Dalits in the areas where municipal investments

and sub-grants are implemented

Treat and support indigenous people, Dalits and other vulnerable communities preferentially

Involve IPs and Dalits in beneficiary groups as needed to increase their participation.

Ensure the identified needs and priorities of vulnerable people are taken into account in the

municipal investments and sub-grant interventions

Conduct project related meetings in indigenous and vulnerable community areas to encourage their

participation. Ensure a quorum which includes representation from IP groups.

Encourage sub-grant interventions providing targeted assistance/training aimed at vulnerable groups

to enhance livelihoods and participation

Build capacity of indigenous peoples, Dalits and other vulnerable communities to promote their

necessary knowledge and skills to participate in the project activities

Encourage development of capacity through trainings on skill enhancement (handicrafts, etc.) of

local people as part of the sub-grant interventions.

15The impacts on IP/ Vulnerable Group will be considered ‘significant’ or Category A if the sub grant positively or negatively:

a)

affects their customary rights of use and access to land and natural resources,

b)

changes their socio-economic status,

c)

affects their cultural and communal integrity,

d)

affects their health, education, livelihood, and social security status, and/or

e)

alters or undermines the recognition of indigenous knowledge.




5.3.2.4 Framework for Developing Gender Action Plan

The Gender Development Plan (GDP) framework outlines the specific gender issues and the

corresponding strategies and activities which will be given due consideration under PPURP. This will

ensure women’s participation and benefits from project activities. The major tools used to identify and

deal with gender issues are: gender analysis, incorporation of gender issues in project design, and

gender-sensitive consultations.

Gender analysis will be an integral part of the initial social assessment carried out as part of the

safeguard screening of the municipal investments and sub-grant interventions. The issues identified at

the screening stage will be assessed during the preparation of the municipal investments and sub-grant

interventions and adequately addressed during implementation.

The project activities should be gender responsive based on the findings of the gender analysis, and

agreed actions should be included in the design of the municipal investments and sub-grant

interventions. The findings and recommendations from the gender analysis carried out at the screening

stage and feedback on gender issues from beneficiaries during implementation must be assessed to

determine the need for further action. The key action points are mentioned in annex 5 of this report.

5.3.2.4.1 Gender Development Plan

The suggested Gender Development Plan for the project is presented below:

Gender Issues Strategy Proposed Activities

Lack of awareness

Awareness campaign about the

project for the communities

focusing on the vulnerable groups

including women.

Formation of women’s groups around specific

interventions as required.

Share information about the project benefits in Nepali

language.

Excluded from

Opportunities

Gender sensitization to all

stakeholders including PMT.

Ensure Women’s participation

during meetings, project

implementation and monitoring.

Carry out meetings and interaction program with and

orientation to women in the project area.

Ensure representation of women in the grievance redress

committee.

Prepare clause to be included in civil work contract

documents to prevent discrimination in employment on

the basis of sex, caste, religion and ethnicity.

Conduct leadership training for women members of

commodity groups in the project area.

Disparity in Wages Accord priority employment to

women in construction activities

under the project.

Promote equal wages for equal

work

Inform women groups regarding proposed

construction works. Identify women interested to

work; assess their skills and involve them as per

their capabilities.

Monitor women’s wage rate and do the needful to

ensure wage equality for similar type of construction

works.

Inclusion of the above elements in the contractors’

documents.




5.4 Process for Managing Environmental and Social Impacts

This ESMF proposes measures to minimize and mitigate environment and social impacts of the project

activities. Proper integration of the findings from the safeguard studies and public consultations into the

planning/decision-making process and engineering outputs (design and bidding documents) will be

essential to avoid/reduce the environmental and social issues that may arise due to the project. To

ensure that sub-grants do not cause any significant adverse impacts, a safeguard screening process will

be established. In case significant impacts are likely to occur, the subgrant/s will require environmental

and social assessment and preparation of mitigation/management plans. The key steps for managing

any potential adverse impacts are outlined in the table below a) for civil works carried out under the Pro-

poor Municipal Investments and Initiatives Window; and (b) for civil works carried out under the

Community-based and the Pro-poor Business Development initiatives.

Table: Key Steps for Managing Environmental and Social Issues

(Pro-poor Municipal Investments and Initiatives Window)

Stages in

Sub-grant Cycle Steps in the Assessment Process

Sub-project Identification PMT/PSC to carry out Environmental and Social Screening to determine key potential

safeguard issues.

PMT/PSC to carry out field verification to determine whether exclusion criteria have been

adhered to.

Project Design

(for works that only require

EMP)

PMT/PSC to consult with key stakeholders

PMT/PSC to prepare Environment Management Plan for sub-projects not requiring detailed

assessment (Category II projects)in parallel with detailed engineering design phase

PMT/PSC to ensure integration of the EMP into the Bidding Documents (if works are carried

out by contractors)

Project Design

(for works that require

detailed assessment, i.e

IEE)

Since works requiring

EIA are included in the

exclusion criteria for

PPURP, EIA details are

not mentioned here.

PMT/PSC to prepare ToR to carry out Initial Environmental Examination (IEE)to determine

level and scope of EA. PMT/PSC will do it. ToR for IEE and IEE should be approved by

relevant line ministry (MoUD). Preparation of IEE to include steps listed below

Baseline Data Collection: Identification of environmental and socio-economic

conditions.

Environmental Impact Prediction/Assessment : Assessment of impacts in terms of

characteristics such as magnitude, extent, duration and significance in quantitative

terms as far as possible; describing all reasonable alternatives, including preferred

and ‘no project’ options.

Mitigation Measures Design : Design to avoid, reduce and minimize adverse

environmental impacts and enhance beneficial impacts

Public Consultation and Participation: At various stages in the assessment process

to ensure quality, comprehensiveness and effectiveness of the stakeholders’

participation and to adequately reflect/address their concerns.

Preparation of Environmental Management Plan (EMP): Determination of specific

actions to be taken during engineering design and construction stages to minimize

or mitigate negative impacts and enhance the positive impacts.

Report Preparation: Summary of all information obtained, analyzed and interpreted

in a report form; also include a non-technical summary including methods used,

results, interpretations and conclusions made.

IEE should incorporate physical, chemical, biological, social, economic and cultural

aspects/environment.

Sub-project approval PMT/PSC to review and approve Technical and Safeguard Report/s (for IEE review

and approval will be through MoUD; IEEs also need to be submitted to the Bank for




Similarly, the key steps for managing any potential adverse environmental and social impacts for sub-

grants projects related to community based initiatives and pro-poor business development initiatives

windows applicable only for works) are outlined in the table below:

Table: Key Steps for Managing Environmental and Social Issues

(for works under the community based initiatives and business development grant window)

No Objection). The Review of report/s to assess whether potential issues have been

adequately addressed to facilitate the decision-making process- decides if project

should proceed, or if further-alternatives must be examined or totally abandoned.

Integrate EMP or IEE into engineering design and bidding documents if works are to

be carried out by contractors.

Implementation

PMT/PSC to orient / train the Contractor/Users Committee and other field staff on

EMP/IEE requirements.

PMT/PSC to supervise, monitor EMP and IEE compliance (if contractor is used,

environmental and social clauses should be part of bidding documents. Monitoring

by the supervising engineer/or LSMC/or by other related entity should be

mentioned)

PMT/PSC to take corrective actions, as and if necessary

Post-Construction LSMC staff to carry out post-construction operations and maintenance in line with

EMP/IEE

the concerned department of municipality

Stages in

Sub-grant Cycle Steps in the Assessment Process

Sub-grant Identification

&proposal screening stage

Sub-grant applicant to carry out environmental and social screening to determine key issues

and appropriate selection of site with support from the PMT/PSC; the screening will be

integral part of the sub-grant application.

PMT/PSC to carry out field verification in collaboration with the sub-grant applicant to

determine whether exclusion criteria have been adhered to.

Project Design

(for sub-project that do not

require detailed

assessment, i.e. only

require EMP)

Grantee to carry out consultations with key stakeholders

Grantee responsible for carrying out Environment Management Plan for sub-projects not

requiring detailed assessment (Category II projects) following approval of the proposal and

before the signing of the grant agreement. The PMT/PSC will provide technical and financial

support to the grantee with the preparation of the EMP.

Integration of the EMP into sub-grant agreement between the municipality and the grantee.

Project Design

(for sub-grant that require

detailed assessment), i.e

for IEE

Since projects requiring

EIA are included in the

exclusion criteria for

PPURP, EIA details are

not mentioned here.

The grantee will be responsible for delivering the IEE following approval of the proposal and

before the signing of the grant agreement with LSMC to determine level and scope of EA.

The PMT/PSC will provide technical and financial support to the grantee with the preparation

of the IEE. ToR for IEE and IEE should be approved by relevant line ministry (MoUD).

Preparation of IEE to include steps listed below

Baseline Data Collection: Identification of environmental and socio-economic

conditions.

Environmental Impact Prediction/Assessment : Assessment of impacts in terms of

characteristics such as magnitude, extent, duration and significance in quantitative

terms as far as possible; describe all reasonable alternatives, including preferred

and ‘no project’ options.

Mitigation Measures Design : Design to avoid, reduce and minimize adverse




environmental impacts and enhance beneficial impacts

Public Consultation and Participation: At various stages in the assessment process

to ensure quality, comprehensiveness and effectiveness of the stakeholders’

participation and to adequately reflect/address their concerns.

Preparation of Environmental Management Plan (EMP): Determination of specific

actions to taken during engineering design and construction stages to minimize or

mitigate negative impacts and enhance the positive impacts.

Report Preparation: Summary of all information obtained, analyzed and interpreted

in a report form; also include a non-technical summary including methods used,

results, interpretations and conclusions made.

IEE should incorporate physical, chemical, biological, social, economic and cultural

aspects/environment

Sub-grantapproval PMT/PSC to review and approve Technical and Safeguard Report/s (for IEE review

and approval will be through MoUD). The review will aim to assess whether all

potential safeguard issues have been adequately addressed to facilitate the

decision-making process, and decide whether the project should proceed, or if

further-alternatives must be examined or totally abandoned.

Grantee to integrate EMP into engineering design and bidding documents with

support from PMT/PSC

Implementation

PMT/PSC to orient / train the grantee and other field staff on EMP/IEE

requirements.

Grantees to monitor and regularly report on EMP/IEE compliance with support from

PMT/PSC.

PMT/PSC to carry out regular field verifications and take corrective actions, as and

if necessary

Post-Construction Grantee to carry out post-construction operations and maintenance in line with

EMP/IEE with support from the PMT/PSC.




CHAPTER VI: INFORMATION AND CONSULTATION FRAMEWORK

The information and consultation framework is intended to lay out the way in which information will be

provided to the project implementers and beneficiaries and also how consultations will be held during

PPURP implementation. Its purpose is to ensure social and environmental issues are effectively

addressed by the project in a transparent and participatory manner. The primary responsibility for the

implementation of information and communication strategies lies with the PMT. The details are

elaborated below.

6.1 Information and Consultation Framework for Municipal Investments and Sub-

grants of PPURP

Effective public consultation will be needed from the earliest (planning) stages of the project. Input from

relevant stakeholders will be essential especially during the identification of municipal investments, sub-

grant proposal preparation, and implementation phases of the municipal investments and sub-grants.

6.1.1 Identify and Analyze Potential Stakeholders to Understand their Interest and

Needs

Each stakeholders group plays a distinct role in the planning and implementation of the municipal

investments and sub-grants. The comprehensive participatory consultation process therefore needs to

be undertaken at the start of the process to identify all potential project stakeholders, as well as their

specific areas of interest and their specific needs. Stakeholders’ identification and analysis need to

continue throughout the project cycle and remain dynamic. The relevant types of stakeholders are the

following:

Users and beneficiaries of the municipal investments and the sub-grants;

People likely to be adversely affected by the municipal investments and sub-grants, directly or

indirectly, in any way;

Poor and vulnerable groups, women groups, and professional/occupational groups;

Government agencies, and government officials at national, regional, and ward level

National and international non-government organizations and donor agencies, community based

organizations and community leaders.

6.1.2 Engage Stakeholders Systematically Throughout the Design and

Implementation Stages

Communication and consultations should include, but not limited to, the identification and record of the

following:

Based on the stakeholder analysis, stakeholder groups to be engaged in participatory processes;

Specific decisions being made through participation, and how

Anticipated breadth and depth of stakeholder engagement at each stage of the project cycle;

How will participation be linked to social and gender strategy, management plans, resettlement

planning and other national and safeguard requirements;

How will participation be used during implementation;

What participation methods will be used, including timeline, sequence and roles and responsibilities

for participatory activities




Important aspects of the communication strategy include communication objectives; challenges and

obstacles to achieving these objectives; target audiences; nature of communication messages;

communication channels; and aspects required for successful implementation of the strategy such as

timelines, responsibilities and resources.

All communication products targeting communities and their representatives including civil society

groups and ward officials should be available in languages appropriate and understandable by the target

audience.

6.1.3 Inform Stakeholders and Accountability Mechanism

Participation is central to the safeguard policy statements and will be facilitated, as and if required, in the

project wards by PMT/PSC. Specific participation requirements related to the IPs such as broad-base

indigenous consent (OP 4.10) need to be observed. Participation needs to be gender inclusive and

responsive, and tailored to the needs of disadvantaged and vulnerable groups.

6.2 Present Status of Consultations Completed at PPURP

6.2.1 Consultations during Prefeasibility Study and Preparation of ESMF

Consultations with key stakeholders have been an integral part of the ESMF preparation. During the

preparation of ESMF, a series of consultations was held at the LSMC and the four PPURP recipient

wards namely 16, 18, 21, 22. The details are as follows:

Dhapagal, Ward no 16, LSMC- 26 April, 2013

Ward office, Ward no: 21, LSMC- 28 April, 2013

AlokHiti, ward no 22, LSMC, 29 April 2013 (8 A:M)

Kayagunani, ward no 18, KSMC, 29 April, 2013 (1 PM)

The list of participants and outcomes of above consultation meetings are elaborated in annex 6 of this

ESMF. Such type of consultations, workshops, and interactions shall be continued during the PPURP

implementation cycle. This type of consultations will be the forum for sharing information about the

project’s objectives, scope, alternative design options, and stakeholders’ perspectives regarding PPURP.

6.2.2 Modes of Future Consultations

A range of formal and informal consultative methods will be carried out for all municipal investments and

sub-grants including, but not limited to: focus group discussions (FGDs), public meetings, community

discussions, and in-depth and key informant interviews; in addition to the socio-economic surveys

required as part of the project M&E framework. Consultations will be held with special emphasis on

vulnerable groups. Encouraging public participation in consultations informs the public and serves as a

venue for the public to express their opinion on priorities which the Project should address.

The key stakeholders to be consulted during municipal investments and sub grant preparation, RP/IP&

VCDP implementation, and program implementation include:

all Affected Persons (APs,) including vulnerable households;

project beneficiaries;

political party representatives, community leaders, and representatives of community based

organizations; representatives from recipient wards




local NGOs;

Officials of LSMCand relevant government agency representatives.

In the local cultural and social set up women do not play an active part in decision-making regarding

municipal services and their standards, although women with relatively higher awareness level (e.g.,

social mobilizers, GoN employees, health workers, teachers, etc.) manage to express their concerns.

Ideally separate meetings will be held for women, but if it will not be possible to held separate meeting

with women, women will be consulted through CBOs or NGOs,

The PMT will ensure that views of APs, particularly those who are vulnerable, related to the project are

looked into and addressed. The PMT will ensure that APs consulted are informed of the outcome of the

decision-making process, and will confirm how their views were incorporated.

6.3 Information Disclosure and Dissemination

This ESMF will be made available in Nepali language to PPURP recipient wards namely 16, 18, 21, 22 of

LSMC. Copies of these documents will be provided to any requester by charging the photocopy cost.

The draft and final ESMF will be disclosed in the websites of LSMC and made available to wards.

Information dissemination and consultation will continue throughout program implementation.

For all municipal investments and sub-grants, information will be disseminated to wards at various

stages. In the initial stage, the LSMC will be responsible for informing potential wards and the general

public of the project about the components of the project through leaflets and publication in local media

outlets and newspapers. The PMT will conduct consultations and disseminate information to all APs

during these initial stages to create awareness of the project.




CHAPTER VII: Grievance Redress Mechanism

Through a participatory process, grievances are expected to be minimized. However, it is necessary to

establish an effective grievance redress mechanism to address complaints/grievances that may arise

related to the project in general including but not limited to environmental and social issues. Any

grievances and objections will be referred to the project Grievances Redress Committee (GRC).

The structure of GRC shall be as follows:

1. CEO of LSMC, Chairman of GRC

2. Project Manager, PMT; Member secretary of GRC

3. Representative from project beneficiaries, member of GRC

4. Representative from Kathmandu Valley Development Authority (KVDA), member of GRC

5. Representative, District Administration Office, Lalitpur, member of GRC

The GRC needs to be established as soon as the Project is effective. The representative from project

beneficiaries will be nominated by the chairman of the GRC for a period of one year. A complaint cell will

be established under the PMT to collect complaints and transmit them to the GRC. The affected

persons/communities can register their grievances through multiple ways including locked boxes at the

project office that can only be opened by a designated person, an email address, a designated telephone

number, and submission of complains at the wards etc. The affected persons can also register their

grievances at the complaint cell established at LSMC. Any affected family or person can approach the

GRC directly regarding issues related to environmental and social issues including temporary impacts

and impacts during construction. Handouts providing details of the structure and process for redressing

grievances will be distributed in the project area through the ward offices. All cases will be registered,

categorized and prioritized by the complaint cell. The GRC will meet in a monthly basis to discuss the

petitions submitted by the people/community. If any member (including CEO) is concerned, then the

grievances will be forwarded to the Steering Committee secretariat (KVDA). The GRC will be regularly

supervised by the World Bank, including reviews of documentation.




CHAPTER VIII: MONITORING AND EVALUATION

8.1 Monitoring and Evaluation

A Monitoring & Evaluation (M&E) system will be established for the project, and safeguard compliance

will be integral part of the project M&E. Both an internal and periodic external monitoring is proposed to

ensure ESMF implementation. Internal monitoring will be carried out by the PMT, focusing on outcomes,

outputs and implementation progress for each sub-grant. The sub-grant recipients will submit to the

municipality regular sub-grant progress reports during implementation.

Similarly periodic external monitoring with external review using quantitative and qualitative methods

shall be followed. The ESMF evaluation will be mid-term and end term and both have to be third party

evaluation.

The table showing indicators, methods, and responsibilities for social and environmental safeguard

monitoring in PPURP is highlighted below. The frequency will be decided by PMT as needed.

Responsibility of Monitoring: The environmental and social expert of PMT is responsible for internal

monitoring of ESMF. The mid-term and end term monitoring shall be done by external experts.

Indicators Methods Responsibility

Number of businesses /houses temporarily disrupted Review report, on the group field

verification

PMT /PSC

Adherence to ESMF requirements Review of report, direct observation PMT /PSC

Adherence to mitigation measures (social and

environmental)

Review of report, field verification PMT /PSC

ESMF requirements incorporated in tender and

bidding documents as needed

Review of tender/contract document PMT/PSC




CHAPTER IX: CAPACITY BUILDING

Since Lalitpur Sub-metropolitan City does not have direct experience with the implementation of World

Bank-funded projects, the ESMF has included capacity strengthening measures.

9.1 Training

Training is an important component for developing capacities. Appropriate and timely training to the

officials with regard to various issues can bring a positive change in the functioning of the staff. Apart

from training in generic areas such as human resource management, information management,

government functionaries require training in handling certain specialized tasks pertaining to

environmental and social issues. The PMT will identify the training need assessment at LSMC and

suggest the training packages including their modality of operation.

Potential training areas are:

Earthquake resistance design of traditional buildings

Hazards of crafts works

Orientations on ESMF

Orientations on legal requirements

Preparing EMPs and ECOPs

General Introduction to EA and Management

9.1.1 For Environment and Social Officer of LSMC

Training on Environmental Assessment, Appraisal and Management, Social Safeguard and Issues

The environmental and social officers of LSMC would require capacity building inputs to help them

understand the environmental risks associated with PPURP sub-grants and the appropriate measures

that can be taken to mitigate adverse impacts on the community. In addition, they would require training

to equip them with skills they can use to appraise sub-grants on key environmental criteria and ensure

that they are environmentally sound. Environmental assessment and management training should also

be provided to them.

9.1.2 For Municipal Staff

Training related to environmentally sound technologies, tools and techniques for conducting

environmental surveys. Trainings on EAs, EPA/EPR requirements, and requirements stipulated by

sectoral legislations shall be provided during the trainings.

Training on Environmental and Social Assessment of PPURP sub-grants will enable the municipal staff

to understand the environmental risks attached to different sub-grants and the appropriate measures that

can be taken to mitigate adverse impacts on the community. This would not only enable them to prepare

environmentally sound sub-grants but also help them put in place strong monitoring and management

plans.




9.2 Training on Preparing Communication Strategies

A well-developed communication strategy needs to be in place to realize better results in implementing

the projects. The PMT will have to develop and effectively implement their own consultation and

communication strategy. Successful implementation of sub grant would depend, to a large extent, on the

ability to maintain close contact with the community in the sub-grant area. For this purpose the PMT

needs to develop consultation plans along with the help of recipient wards. Such a communication

strategy would help in better communication, clearer understanding of social problems, better service

delivery, easier conflict resolution and grievance redress. Training modules may be developed to help

municipalities draft and implement appropriate consultation strategies. Experts from the PSC will assist

the PMT in preparing this training.

final lalitpur sub metropolitan city draft esmf ppurp clean final

Documents

project institutional

project description

project beneficiaries

project components

nepal environmental

broader project objectives

participatory action

community awareness